Stock J Has a Beta of 1

question 65

Multiple Choice

Stock J has a beta of 1.52 and an expected return of 15.76percent.Stock K has a beta of .98 and an expected return of 11.44 percent.What is the risk-free rate if these securities both plot on the security market line?

• A)3.60 percent
• B)3.34 percent
• C)3.57 percent
• D)3.52 percent
• E)3.64 percent

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