ng 8) A stock has a beta of 1.04, the expected return on the market is 11.75, and the risk-free rate is 3.75. What must the expected return on this stock be? A) 9.89 percent B) 38.32 percent C) 13.56 percent D) 19.16 percent E) 12.07 percent n al 10) Assume the economy has an 18 percent chance of booming, a 3 percent chance of being recessionary, and being normal the remainder of the time. A stock is expected to return 16.8 percent in a boom, 12.9 percent in a normal economy, and -4.5 percent in a recession. What is the expected rate of return on this stock? A) 7.98 percent B) 8.63 percent C) 9.17 percent D) 13.08 percent E) 10.68 percent 20) What is the payback period for a project with the following cash flows? Year Cash Flow 75,000 15,000 23,000 35,000 25,000 A) 2.56 years B) 2.89 years 3.08 years D) 3.24 years E) Never