Using the C APM, what would the expected rate of return for a stock with a beta
Question:
Using the C APM, what would the expected rate of return for a stock with a beta of 1.3 be when the risk-free rate is 4 percent and the expected market risk premium is 5 percent?
a. 5.3%
b. 8.6%
c. 9.4%
d. 10.5%
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