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4. If the expected return on the market is 10.95 percent, the inflation rate is 0.75 percent, the risk-free rate is 2.06 percent, and Big
4. If the expected return on the market is 10.95 percent, the inflation rate is 0.75 percent, the risk-free rate is 2.06 percent, and Big Madden
common stock has a beta of 2.26, then what is the expected return for Big Madden stock?
O 15.51% (plus or minus 0.02 percentage points)
O 19.94% (plus or minus 0.02 percentage points)
O 22.15% (plus or minus 0.02 percentage points)
O 17.72% (plus or minus 0.02 percentage points)
O None of the above is within 0.02 percentage points of the answer
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