The historical returns for the past four years for Stock C and the stock market portfolio are: Stock C: 10%,30%,20%,20%; Market portfolio: 5%,15%,25%,15%.If the risk-free rate of return is 5%,calculate the required rate of return on Stock C using the CAPM.
A) 5%
B) 10%
C) 15%
D) 13%
Correct Answer:
Verified
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