EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
Bartleby Related Questions Icon

Related questions

Question

# General Account

The stock of Delta Electrical, Inc., has a beta of 0.98. The market risk
premium is 9 percent and the risk-free rate is 2.4 percent. What is the
expected return on this stock?
A) 8.91 percent
B) 9.43 percent
C) 10.67 percent
D) 11.22 percent
E) 13.22 percent
expand button
Transcribed Image Text:The stock of Delta Electrical, Inc., has a beta of 0.98. The market risk premium is 9 percent and the risk-free rate is 2.4 percent. What is the expected return on this stock? A) 8.91 percent B) 9.43 percent C) 10.67 percent D) 11.22 percent E) 13.22 percent
Expert Solution
Check Mark