The Market Has an Expected Return of 13 Percent and the Risk-Free

question 40

Essay

The market has an expected return of 13 percent and the risk-free rate is 5.5 percent. If Morgan Stanley has a beta of 1.85, what is the required return for Morgan Stanley?

---

Definitions:

Exporter

A person or entity that sells goods or services produced in one country to another country.

Shoes

Footwear made from various materials, designed to protect and comfort the human foot while doing various activities.

Economic Well-Being

A measure of the financial health and stability of an individual, community, or nation, typically evaluated by factors such as income, employment, and access to resources.

Importer

An individual or company that buys goods from foreign countries for resale in its own market.