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%

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: