A Particular Stock Has a Beta of 1

question 59

Multiple Choice

A particular stock has a beta of 1.4 and an expected return of 13%.If the expected risk premium on the market portfolio is 6%,what's the expected return on the market portfolio?

• A) 10.6%
• B) 4.6%
• C) 8.4%
• D) 9.3%

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