Suppose that KAN's beta is 1.5.If the market risk premium is 8% and the risk-free interest rate is 4%,then the expected return for KAN stock is?

Name: Suppose that KAN's beta is 1.5.If the market risk premium is 8% and the risk-free interest rate is 4%,then the expected return for KAN stock is?
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Question

Quizplus · Accepted Answer

The expected return can be calculated using the Capital Asset Pricing Model (CAPM): Expected Return = Risk-Free Rate + Beta * Market Risk Premium. Substituting the given values: 4% + 1.5 * 8% = 16%.

Suppose That KAN's Beta Is 1