Stock Z has a beta of 0.9 and a required rate of return of 12 percent.What is the market expected return if the risk-free rate is 5.25 percent?
A) 7.50%
B) 12.75%
C) 13.33%
D) 18.58%

Name: Stock Z has a beta of 0.9 and a required rate of return of 12 percent.What is the market expected return if the risk-free rate is 5.25 percent? A) 7.50% B) 12.75% C) 13.33% D) 18.58%
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Question

Quizplus · Accepted Answer

Market risk premium 11ea8229_34d1_1933_bbd8_37848dce72dd_TB1726_11 Market return = 7.5% + 5.25% = 12.75%

Stock Z Has a Beta of 0