Oak Enterprises Has a Beta of 1

question 56

Multiple Choice

Oak Enterprises has a beta of 1.2, the market return is 8%, and the T-bill rate is 4%. What is their expected required return of common equity?

• A)Between 11% and 12%
• B)Between 8% and 9%
• C)Between 7% and 8%
• D)Between 4% and 5%