Tanzlin Manufacturing's Common Stock Has a Beta of 1

question 82

Multiple Choice

Tanzlin Manufacturing's common stock has a beta of 1.5. If the expected risk-free return is 2% and the expected return on the market is 14%, what is the expected return on the stock?

• A) 13.5%
• B) 21.0%
• C) 16.8%
• D) 20.0%

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