Zoro Corporation Has a Beta of 2

question 61

Multiple Choice

Zoro Corporation has a beta of 2.0. The risk-free rate of interest is 5%, and the return on the stock market overall is expected to be 13%. What is the required rate of return on Zoro stock?

• A) 21%.
• B) 41%.
• C) 16%.
• D) 13%.
• E) none of the above

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