Determine the Expected Return of a Company's Stock Given a Risk

question 104

Multiple Choice

Determine the expected return of a company's stock given a risk free rate of 7%, an expected market return of 12%, a market risk premium of 5% and a company Beta of 1.5.

• A)0.115
• B)0.125
• C)0.135
• D)0.145

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Definitions:

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