Calculate the expected return for B Services which has a beta of 0.83 when the risk free rate is 0.05 and you expect the market return to be 0.12.
A) 14.96%
B) 16.15%
C) 10.81%
D) 17.00%
E) 15.25%

Name: Calculate the expected return for B Services which has a beta of 0.83 when the risk free rate is 0.05 and you expect the market return to be 0.12. A) 14.96% B) 16.15% C) 10.81% D) 17.00% E) 15.25%
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

k = 0.05 + 0.83 (0.12 - 0.05)= 0.1081

Calculate the Expected Return for B Services Which Has a Beta