Astock has a beta of 1.15, the expected return on the market (rm) is 10.3 percent, and the risk-free rate is 3.1 percent. what is re for this stock? (do not round intermediate calculations and do not enter your answer as a percent. round your answer to 3 decimal places, e. g., 0.315 instead of 31.5%.)

0.114

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 3.1% + 1.15 × (10.3% - 3.1%)

= 3.1% + 1.15 × 7.2%

= 3.1% + 8.28%

= 0.114

The (Market rate of return - Risk-free rate of return)  is also known as market risk premium

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it required the president to inform congress within forty-eight hours of any new troop commitment.

the war powers resolution (1973) is a federal law designed to limit the u.s. president’s ability to initiate or intensify military actions abroad without the approval of the congress.

it establishes that the president can send armed forces into action abroad only by declaration of war by congress, statutory authorization, or in case of a national emergency created by attack upon the united states, its territories or possessions, or its armed forces.

it requires the president to notify congress within 48 hours of sending armed forces to military action.