The Beta of HSR's Stock Is 1

question 14

Multiple Choice

The beta of HSR's stock is 1.15, the expected return on the S&P500 is 7.4%, and T-bonds are yielding 2.4%. What is the required return on HSR stock?

• A) 5.75%
• B) 8.15%
• C) 8.51%
• D) 10.91%

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