Ben & Terry's Has an Expected Return of 12

question 38

Multiple Choice

Ben & Terry's has an expected return of 12.9 percent and a beta of 1.25.The expected return on the market is 11.7 percent.What is the risk-free rate?

• A)3.87 percent
• B)4.24 percent
• C)4.61 percent
• D)6.29 percent
• E)6.92 percent