A Stock Has an Expected Return of 17

question 58

Multiple Choice

A stock has an expected return of 17.2 percent and a beta of 1.59. The risk-free rate is 5.1 percent. What is the slope of the security market line?

• A) 7.55 percent
• B) 7.61 percent
• C) 7.78 percent
• D) 7.92 percent
• E) 8.03 percent