menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Principles of Corporate Finance Study Set 3
  4. Exam
    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
  5. Question
    Suppose the Beta of Microsoft Is 1
Solved

Suppose the Beta of Microsoft Is 1

Question 84

Question 84

Multiple Choice

Suppose the beta of Microsoft is 1.13, the risk-free rate is 3 percent, and the market risk premium is 8 percent. Calculate the expected return for Microsoft.


A) 12.04 percent
B) 15.66 percent
C) 13.94 percent
D) 8.65 percent

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q79: The correlation between the return on a

Q80: Briefly explain the effect of introducing borrowing

Q81: The capital asset pricing model (CAPM)states which

Q82: Overpriced stocks will plot below the security

Q83: The correlation coefficient between the efficient portfolio

Q85: The security market line (SML)is the graph

Q86: Assume the following data for a stock:

Q87: One would expect a stock with a

Q88: The distribution of annual returns over long

Q89: A factor in APT is a variable

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines