Assume that GM common stock has a beta of + 0.8.If you expect the market to go up 20% next year,you should also expect GM's price to go up
A)16.0%.
B)16.8%.
C)19.2%.
D)30.0%.

Question

Quizplus · Accepted Answer

The expected return on GM's stock can be calculated using the formula: Expected Return = Beta * Market Return. Here, with a beta of 0.8 and a market return of 20%, the expected return on GM's stock would be 0.8 * 20% = 16%.

Assume That GM Common Stock Has a Beta of