Stock A has a beta of 1.09 while Stock B has a beta of .76 and an expected return of 8.2 percent.What is the expected return on Stock A if the risk-free rate is 4.6 percent and both stocks have equal reward-to-risk premiums?
A)11.12 percent
B)8.07 percent
C)9.76 percent
D)10.89 percent
E)11.73 percent

Question

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The Answer of Stock A has a beta of 1.09 while Stock B has a beta of .76 and an expected return of 8.2 percent.What is the expected return on Stock A if the risk-free rate is 4.6 percent and both stocks have equal reward-to-risk premiums?
A)11.12 percent
B)8.07 percent
C)9.76 percent
D)10.89 percent
E)11.73 percent

Stock a Has a Beta of 1