The Risk-Free Rate Is 4

question 82

Multiple Choice

The risk-free rate is 4.5 percent.The expected return on the market is 13 percent with a standard deviation of 15 percent.What is the required rate of return for Stock X if it has a beta of 1.4?

• A) 16.40%
• B) 18.20%
• C) 20.50%
• D) 22.70%

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