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  3. Study Set
    Fundamentals Of Corporate Finance Study Set 21
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    Exam 13: Return, Risk, and the Security Market Line
  5. Question
    A Stock Has a Beta of 1
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A Stock Has a Beta of 1

Question 3

Question 3

Multiple Choice

A stock has a beta of 1.4 and an expected return of 16%. The risk-free rate is 5%. What is the slope of the Security Market Line?


A) 7.86%
B) 7.98%
C) 8.23%
D) 8.67%
E) 8.98%

Correct Answer:

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