Question
Suppose the beta of the DNA Engineered Toothpaste Company is 1.3, the risk-free rate is 2 percent, and the expected market rate of return is
Suppose the beta of the DNA Engineered Toothpaste Company is 1.3, the risk-free rate is 2 percent, and the expected market rate of return is 10 percent. Calculate the expected rate of return. The answer is closest to:
Group of answer choices
13.1 percent
6.5 percent
9.0 percent
10.4 percent
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Public Finance
Authors: Richard W. Tresch
2nd Edition
0126990514, 978-0126990515
