The Stock of Martin Industries Has a Beta of 1

question 55

Multiple Choice

The stock of Martin Industries has a beta of 1.02.The risk-free rate of return is 3.7 percent and the market risk premium is 6.85 percent.What is the expected rate of return on Martin Industries stock?

• A)10.69%
• B)6.91%
• C)16.42%
• D)14.46%
• E)10.19%%

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