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Assume the following information about the market and Lithium Motors Stock. Lithium's stock is only one-third as risky as the market on average, the riskfree
Assume the following information about the market and Lithium Motors Stock. Lithium's stock is only one-third as risky as the market on average, the riskfree rate is 2.50%, the market risk premium is 8.0%. According to CAPM, what is the expected return for the firm's stock?
A. 10.50%
B. 4.33%
C. 5.17%
D. 6.57%
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