Suppose the Beta of Microsoft Is 1

question 84

Multiple Choice

Suppose the beta of Microsoft is 1.13, the risk-free rate is 3 percent, and the market risk premium is 8 percent. Calculate the expected return for Microsoft.

• A)12.04 percent
• B)15.66 percent
• C)13.94 percent
• D)8.65 percent

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Definitions:

Fiberglass Material

A composite material made from fine fibers of glass and often used in a variety of applications, including construction and automobile parts.