Bama Entertainment has common stock with a beta of 1.22.The market risk premium is 8.1 percent and the risk-free rate is 3.9 percent.What is the expected return on this stock?
A) 13.31 percent
B) 12.67 percent
C) 12.40 percent
D) 13.78 percent
E) 14.13 percent
Correct Answer:
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