CIBC Stock Has a Beta of 1

question 84

Multiple Choice

CIBC stock has a beta of 1.2.If the risk-free rate is 1.8%,and the market risk premium is 6.5%,what is the expected return of CIBC stock,according to the CAPM?

• A)7.44%
• B)8.3%
• C)9.6%
• D)7.8%
• E)10%

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Definitions:

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