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If the risk free rate of return is 3.10% and the market risk premium is 7.60%, which of the following stocks has the right rate
If the risk free rate of return is 3.10% and the market risk premium is 7.60%, which of the following stocks has the right rate of return according to the Capital Asset Pricing Model:
Stock | Beta | Return (r_E) |
Reliance Industries | 0.79 | 8.47% |
Unilever International | 1.47 | 14.50% |
Merck Incorporated | 1.28 | 11.22% |
Pfizer Incorporated | 1.46 | 11.68% |
Johnson and Johnson | 0.95 | 10.32% |
A. Unilever International
B. Merck Incorporated
C. Pfizer Incorporated
D. Reliance Industries
E. Johnson and Johnson
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