The Stock of Uncle Fred's Has a Beta a 1

question 206

Multiple Choice

The stock of Uncle Fred's has a beta a 1.23 and an expected return of 13.42%. The risk-free rate of return is 3.8%. What is the expected return on the market?

• A) 9.87%
• B) 10.04%
• C) 10.67%
• D) 11.23%
• E) 11.62%