Question
Calculate the expected return from a stock with a beta coefficient of 1.16 if there is a 11.2% expected rate of return from the market
Calculate the expected return from a stock with a beta coefficient of 1.16 if there is a 11.2% expected rate of return from the market and a risk-free rate of 4.2%. Round the final answer to one decimal place.
a. 4.2%
b. 9.6%
c. 11.2%
d. 12.3%
e. 17.2%
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
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