Dinner Foods Stock Has a Beta of 1

question 79

Multiple Choice

Dinner Foods stock has a beta of 1.45 and an expected return of 13.43 percent.Edwards' Meals stock has a beta of .95 and an expected return of 10.27 percent.Assume that both stocks are correctly priced.Given this,the risk-free rate is ________ percent and the market rate of return is ________ percent.

• A) 4.02; 11.53
• B) 4.09; 12.35
• C) 4.10; 11.53
• D) 4.27; 10.59
• E) 4.41; 10.25

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