The expected market return is E(RM)is estimated to be 12% per annum, while the risk-free return (rf) is 3%. What is the expected return of Facebook (FB) stock given the below beta estimate?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
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Problem 66.5C: Comparative Analysis: Under Armour, Inc., versus Columbia Sportswear Refer to the 10-K reports of...
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The expected market return is E(RM)is estimated to be 12% per annum, while the risk-free return (rf) is 3%.  What is the expected return of Facebook (FB) stock given the below beta estimate?

 

Finance Home Watchlists
yahoo!
finance
Facebook, Inc. (FB)
NasdaqGS- NasdaqGS Real Time Price. Currency in USD
Summary
233.42 -4.13 (-1.74%)
At close: July 24:00PM EDT
Previous Close
Open
Bid
Ask
Day's Range
Company Outlook
237.55
239.00
233.60 x 900
Search for news, symbols or cor
234.00 x 3200
My Portfolio
232.61 - 240.00
Chart
Market Cap
Beta (5Y
Monthly)
PE Ratio (TTM)
EPS (TTM)
Earnings Date
Screeners Prem
Add to watchli:
Conversations Sta
665.037B
1.20
32.03
7.29
Jul 29, 2020
Transcribed Image Text:Finance Home Watchlists yahoo! finance Facebook, Inc. (FB) NasdaqGS- NasdaqGS Real Time Price. Currency in USD Summary 233.42 -4.13 (-1.74%) At close: July 24:00PM EDT Previous Close Open Bid Ask Day's Range Company Outlook 237.55 239.00 233.60 x 900 Search for news, symbols or cor 234.00 x 3200 My Portfolio 232.61 - 240.00 Chart Market Cap Beta (5Y Monthly) PE Ratio (TTM) EPS (TTM) Earnings Date Screeners Prem Add to watchli: Conversations Sta 665.037B 1.20 32.03 7.29 Jul 29, 2020
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