The SML is 6% + 8% (Beta). For Stock A, its covariance with the market is 200 and its standard deviation is 10. The expected rate of return for Stock A is
A) 10%.
B) 18%.
C) 8%.
D) 22%.

Question

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The Answer of The SML is 6% + 8% (Beta). For Stock A, its covariance with the market is 200 and its standard deviation is 10. The expected rate of return for Stock A is
A) 10%.
B) 18%.
C) 8%.
D) 22%.

The SML Is 6% + 8% (Beta)