Calculate the Expected Return for D Industries, Which Has a Beta

question 59

Multiple Choice

Calculate the expected return for D Industries, which has a beta of 1.0 when the risk-free rate is 0.03 and you expect the market return to be 0.13.

• A) 8.6 percent
• B) 9.2 percent
• C) 11.0 percent
• D) 12.0 percent
• E) 13.0 percent

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