Multiple Choice
Zoro Corp. has a beta of 2.0. The risk-free rate of interest is 5 percent, and the return on the stock market overall is expected to be 13 percent. What is the required rate of return on Zoro stock?
A) 21 percent
B) 41 percent
C) 16 percent
D) 13 percent
E) None of these are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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