If the expected rate of return on the market portfolio is 12% and T-bills yield 6%, what must be the beta of a stock that investors expect to return 10%?

the beta of the stock is 0.67

Explanation:

The computation of the beta of the stock is shown below

As we know that

As per CAPM model

Expected rate of return = risk free rate + beta × (market rate of return - risk free rate)

0.10 = 0.06 + beta × (0.12 - 0.06)

Beta = 0.04 ÷ 0.06

= 0.67

Hence, the beta of the stock is 0.67

We simply applied the above formula so that the correct value could come

And, the same is to be considered

turnover

the amount of money taken by a business in a particular period.

answer; situational irony;