Calculate the expected return for F Inc.which has a beta of 1.3 when the risk free rate is 0.06 and you expect the market return to be 0.125.
A) 12.65%
B) 13.55%
C) 14.45%
D) 15.05%
E) 16.34%

Name: Calculate the expected return for F Inc.which has a beta of 1.3 when the risk free rate is 0.06 and you expect the market return to be 0.125. A) 12.65% B) 13.55% C) 14.45% D) 15.05% E) 16.34%
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Quizplus · Accepted Answer

k = 0.06 + 1.3 (0.125 - 0.06)= 0.1445 = 14.45%

Calculate the Expected Return for F Inc