What is the expected return on a stock with a beta of 1.09, a market risk premium of 8%, and a risk-free rate of 4%?
A)4.36%
B)8.36%
C)8.72%
D)12.72%

Name: What is the expected return on a stock with a beta of 1.09, a market risk premium of 8%, and a risk-free rate of 4%? A)4.36% B)8.36% C)8.72% D)12.72%
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Quizplus · Accepted Answer

The expected return can be calculated using the Capital Asset Pricing Model (CAPM): Expected Return = Risk-Free Rate + Beta * Market Risk Premium = 4% + 1.09 * 8% = 12.72%.

What Is the Expected Return on a Stock with a Beta