Emery IncHas a Beta Equal to 1

question 97

Multiple Choice

Emery Inc.has a beta equal to 1.8 and a required return of 15% based on the CAPM.If the risk free rate of return is 4.2%,the expected return on the market portfolio is

• A) 21%.
• B) 19.2%.
• C) 13.4%.
• D) 10.2%.

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