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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 13: Return, Risk, and the Security Market Line
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    The Risk-Free Rate of Return Is 3
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The Risk-Free Rate of Return Is 3

Question 227

Question 227

Multiple Choice

The risk-free rate of return is 3.78% and the market risk premium is 6.42%. What is the expected rate of return on a stock with a beta of 1.09?


A) 7.00%
B) 7.78%
C) 10.54%
D) 10.78%
E) 11.12%

Correct Answer:

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