Multiple Choice
Suppose the beta of ExxonMobil is 0.65, the risk-free rate is 4 percent, and the expected market rate of return is 14 percent. Calculate the expected rate of return on ExxonMobil.
A) 12.6 percent
B) 10.5 percent
C) 13.1 percent
D) 6.5 percent
Correct Answer:
Verified
Correct Answer:
Verified
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