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7. You own a stock that has an expected return of 13.6% and a beta of 1.3. The U.S. Treasury bill is yielding 4.2% and
7.
You own a stock that has an expected return of 13.6% and a beta of 1.3. The U.S. Treasury bill is yielding 4.2% and the inflation rate is 3.8%. What is the expected rate of return on the market?
| a. | 9.74% | |
| b. | 10.67% | |
| c. | 11.43% | |
| d. | 10.87% | |
| e. | 9.80% |
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