A stock has a beta of 1.47 and an expected return of 16.6 percent.The risk-free rate is 4.8 percent.What is the slope of the security market line?
A)6.49 percent
B)7.28 percent
C)8.03 percent
D)9.03 percent
E)9.99 percent

Name: A stock has a beta of 1.47 and an expected return of 16.6 percent.The risk-free rate is 4.8 percent.What is the slope of the security market line? A)6.49 percent B)7.28 percent C)8.03 percent D)9.03 percent E)9.99 percent
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

Slope = (0.166 - 0.048)/1.47 = 8.03 percent

A Stock Has a Beta of 1