A stock has an expected return of 17.2 percent and a beta of 1.65.The risk-free rate is 5.1 percent.What is the slope of the security market line?
A)7.25 percent
B)7.33 percent
C)7.78 percent
D)7.92 percent
E)8.03 percent

Name: A stock has an expected return of 17.2 percent and a beta of 1.65.The risk-free rate is 5.1 percent.What is the slope of the security market line? A)7.25 percent B)7.33 percent C)7.78 percent D)7.92 percent E)8.03 percent
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Question

Quizplus · Accepted Answer

Slope = (0.172 - 0.051)/1.65 = 7.33 percent

A Stock Has an Expected Return of 17