Question
Stock L is 20% more risky than the average stock and investors currently anticipate that the average stock will return 12.0%. U.S. Treasuries are presently
Stock L is 20% more risky than the average stock and investors currently anticipate that the average stock will return 12.0%. U.S. Treasuries are presently yielding 3.5%. Under CAPM, what is the required rate of return on Stock L?
A. 12.2%
B.13.3%
C. 13.5%
D.14.2%
E. 13.7%
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Options Futures And Other Derivatives
Authors: John C. Hull
11th Edition
013693997X, 9780136939979
