Hardware and Moore Has an Expected Return of 12

question 56

Multiple Choice

Hardware and Moore has an expected return of 12.9 percent and a beta of 1.21. 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) 5.38 percent
• E) 5.99 percent

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