The expected return for a stock,calculated using the CAPM,is 25%.The risk free rate is 7.5% and the beta of the stock is 0.80.Calculate the implied return on the market.
A) 7.50%
B) 13.91%
C) 17.50%
D) 21.88%
E) 14.38%

Name: The expected return for a stock,calculated using the CAPM,is 25%.The risk free rate is 7.5% and the beta of the stock is 0.80.Calculate the implied return on the market. A) 7.50% B) 13.91% C) 17.50% D) 21.88% E) 14.38%
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Quizplus · Accepted Answer

25 = 7.5 + 0.8(X).X = 14.38%

The Expected Return for a Stock,calculated Using the CAPM,is 25