The Expected Return for a Stock,calculated Using the CAPM,is 10

question 54

Multiple Choice

The expected return for a stock,calculated using the CAPM,is 10.5%.The market return is 9.5% and the beta of the stock is 1.50.Calculate the implied risk-free rate.

• A) 7.50%
• B) 13.91%
• C) 17.50%
• D) 21.88%
• E) 14.38%