PPO stock has a beta of 0.97 and an expected return of 11.22 percent.The risk-free rate of return is 2.48 percent.What is the expected return on the market?
A)11.85%
B)13.04%
C)11.62%
D)11.49%
E)12.16%

Name: PPO stock has a beta of 0.97 and an expected return of 11.22 percent.The risk-free rate of return is 2.48 percent.What is the expected return on the market? A)11.85% B)13.04% C)11.62% D)11.49% E)12.16%
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Question

Quizplus · Accepted Answer

0.1122 = 0.0248 + 0.97(R_m − 0.0248) R_m= 0.1149,or 11.49%

PPO Stock Has a Beta of 0