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John is an analyst at Star Investments, Inc. and is currently working on valuing HomeStore, Inc. which is a home goods retail store. The Beta

John is an analyst at Star Investments, Inc. and is currently working on valuing HomeStore, Inc. which is a home goods retail store. The Beta for Homestore is 1.5 and standard deviation for monthly returns of Homestore is 10%. Expected return on the market is 8% and Treasury bill rate is 3%. Using the data above, compute the expected return for Homestore, Inc. a. 15% b. 7.5% c. 10.5% d. 10%

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