The Beta of Elsenore, Ltd

question 1

Multiple Choice

The beta of Elsenore, Ltd., share is 1.6, whereas the risk-free rate of return is 8 per cent. If the expected return on the market is 15 per cent, then what is the expected return on Elsenore?

• A) 11.20%
• B) 19.20%
• C) 24.00%
• D) 32.00%

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