A Company Has a Beta of 0

question 33

Multiple Choice

A company has a beta of 0.85. If the market return is expected to be 9 percent and the risk-free rate is 2.5 percent, what is the company's required return?

• A) 7.350 percent
• B) 8.025 percent
• C) 10.150 percent
• D) 21.775 percent