QUESTION $18$

The risk$-$free return is $4\mathrm{.}26\%,$ the inflation rate is $3\mathrm{.}40\%,$ and the expected return on the market is $11\mathrm{.}57\%.$ What is the expected real return for Hantz stock if it has a beta of $0\mathrm{.}65?$

$3.78\%($plus or minus $22bps)$

$5\mathrm{.}43\%($plus or minus $22$ bps$)$

$4\mathrm{.}56\%($plus or minus $22$ bps$)$

$7\mathrm{.}90\%($plus or minus $22$ bps$)$

None of the above is within $22$ bps of the correct answe