Your estimate of the market risk premium is 10%. The risk-free rate of return is 5%, and JB Hi-Fi has a beta of 0.8. According to the Capital Asset Pricing Model (CAPM) , what is its expected return?
A) 13.0%
B) 12.0%
C) 11.1%
D) 10.5%
Correct Answer:
Verified
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