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Assume that the risk-free rate is 4% and the expected return on the market is 11.5%. What is the expected rate of return on a stock with a beta of 0.8? 15.5% 12.40% 10.00% 9.20%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 2P: AA Corporations stock has a beta of 0.8. The risk-free rate is 4%, and the expected return on the...

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Question

Assume that the risk-free rate is 4% and the expected
return on the market is 11.5%. What is the expected rate
of return on a stock with a beta of 0.8?
15.5%
12.40%
10.00%
9.20%

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