# The​ risk-free rate is 3​% and you believe that the​ S&P 500's excess return will be...

###### Question:

The​ risk-free rate is 3​% and you believe that the​ S&P 500's excess return will be 10.6​% over the next year. If you invest in a stock with a beta of 1.1 (and a standard deviation of 30​%),

what is your best guess as to its expected excess return over the next​ year?

The expected excess return over the next year is? (Round to two decimal​ places.)

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