The Stock of Martin Industries Has a Beta of 1

question 107

Multiple Choice

The stock of Martin Industries has a beta of 1.43. The risk-free rate of return is 3.6% and the market risk premium is 9%. What is the expected rate of return on Martin Industries stock?

• A) 11.3%
• B) 14.1%
• C) 16.5%
• D) 17.4%
• E) 18.0%

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