The Rate of Return on the S&P 500 Is 16

question 20

Multiple Choice

The rate of return on the S&P 500 is 16.2%.Epsilon has a beta of 1.85.If the T-bond rate is 5.9%,what should investors expect as a rate of return on Epsilon's stock?

• A)16.2%
• B)22.1%
• C)18.5%
• D)25.0%

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