Multiple Choice
You own a stock that has an expected return of 15.72 percent and a beta of 1.33.The U.S.Treasury bill is yielding 3.82 percent and the inflation rate is 2.95 percent.What is the expected rate of return on the market?
A) 12.07 percent
B) 12.77 percent
C) 13.64 percent
D) 14.09 percent
E) 13.42 percent
Correct Answer:
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