What Is the Expected Market Return If the Expected Return

question 71

Multiple Choice

What is the expected market return if the expected return on asset A is 16% and the risk-free rate is 7%? Asset A has a beta of 1.2.

• A) 9.5%
• B) 14.5%
• C) 16.5%
• D) 17.5%
• E) 20.5%

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Definitions:

Goods And Services

Goods are tangible items that satisfy human wants and needs, while services are intangible activities or benefits that one party can offer to another.