Rodriguez Roofing's Stock Has a Beta of 1

question 33

Multiple Choice

Rodriguez Roofing's stock has a beta of 1.23,its required return is 11.25%,and the risk-free rate is 4.30%.What is the required rate of return on the stock market? (Hint: First find the market risk premium.)

• A)9.95%
• B)10.20%
• C)10.45%
• D)10.72%

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