Calculate the expected return for C Inc.which has a beta of 0.8 when the risk free rate is 0.04 and you expect the market return to be 0.12.
A) 8.10%
B) 9.60%
C) 10.40%
D) 11.20%
E) 12.60%

Name: Calculate the expected return for C Inc.which has a beta of 0.8 when the risk free rate is 0.04 and you expect the market return to be 0.12. A) 8.10% B) 9.60% C) 10.40% D) 11.20% E) 12.60%
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Question

Quizplus · Accepted Answer

k = 0.04 + 0.8 (0.12 - 0.04)= 0.1040 = 10.40%

Calculate the Expected Return for C Inc