The risk-free rate of return is 3.3 percent and the market risk premium is 7.5 percent.What is the expected rate of return on a stock with a beta of 1.62?
A)9.12%
B)10.10%
C)15.45%
D)17.50%
E)15.36%

Name: The risk-free rate of return is 3.3 percent and the market risk premium is 7.5 percent.What is the expected rate of return on a stock with a beta of 1.62? A)9.12% B)10.10% C)15.45% D)17.50% E)15.36%
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Question

Quizplus · Accepted Answer

E(r)= .033 + 1.62 × .075 = .1545,or 15.45%

The Risk-Free Rate of Return Is 3