The Beta Coefficient of Zed Corporation Is Equal to 0

question 72

Multiple Choice

The beta coefficient of Zed Corporation is equal to 0.7 and the required rate of return on the stock equals 12 percent. If the expected return on the market is 12.5 percent, what is the risk-free rate of return?

• A)11.56%
• B)10.83%
• C)9.52%
• D)12.25%
• E)8.89%

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