Consider the CAPM

question 73

Multiple Choice

Consider the CAPM. The risk-free rate is 6%, and the expected return on the market is 18%. What is the expected return on a stock with a beta of 1.3?

• A) 6%
• B) 15.6%
• C) 18%
• D) 21.6%

---

Definitions:

Synthesis

The process of combining components or elements to form a coherent entity, often referring to chemical synthesis.

Reactants

Substances initially present in a chemical reaction that are consumed to form products during the reaction.

Ethyl Magnesium Chloride

A Grignard reagent represented as CH3CH2MgCl, utilized in organic synthesis to form carbon-carbon bonds.

Pent-1-yne

An alkyne with the chemical formula C5H8, characterized by a triple bond between the first and second carbon atoms in the five-carbon chain.