Question
5) The stock of Martin Industries has a beta of 1.02. The risk-free rate of return is 3.7 percent and the market risk premium is
5)
The stock of Martin Industries has a beta of 1.02. The risk-free rate of return is 3.7 percent and the market risk premium is 6.85 percent. What is the expected rate of return on Martin Industries stock?
a. 10.69%
b. 6.91%
c. 16.42%
d. 14.46%
e. 10.19%%
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
