The Stock of Big Joe's Has a Beta of 1

question 50

Multiple Choice

The stock of Big Joe's has a beta of 1.14 and an expected return of 11.6%. The risk-free rate of return is 4%. What is the expected return on the market?

• A) 7.60%
• B) 8.04%
• C) 9.33%
• D) 10.67%
• E) 12.16%

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