Your Estimate of the Market Risk Premium Is 4

question 57

Multiple Choice

Your estimate of the market risk premium is 4%. The risk-free rate of return is 2%, and JB Hi-Fi has a beta of 1.5. According to the Capital Asset Pricing Model (CAPM) , what is its expected return?

• A)10.4%
• B)8.0%
• C)9.0%
• D)11.9%

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