Lear Corp Has an Expected Excess Return of 8% Next Year

question 10

Multiple Choice

Lear Corp. has an expected excess return of 8% next year. Assume Lear's beta is 1.43. If the economy booms and the stock market beats expectations by 5%, what was Lear's actual excess return?

• A) 7.15%
• B) 13%
• C) 15.15%
• D) 18.59 %