The Expected Return for a Stock,calculated Using the CAPM,is 25

question 16

Multiple Choice

The expected return for a stock,calculated using the CAPM,is 25%.The risk free rate is 7.5% and the beta of the stock is 0.80.Calculate the implied return on the market.

• A) 7.50%
• B) 13.91%
• C) 17.50%
• D) 21.88%
• E) 14.38%