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    Exam 9: Capital Market Theory and Asset Pricing Models
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    The Beta of HSR's Stock Is 1
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The Beta of HSR's Stock Is 1

Question 14

Question 14

Multiple Choice

The beta of HSR's stock is 1.15, the expected return on the S&P500 is 7.4%, and T-bonds are yielding 2.4%. What is the required return on HSR stock?


A) 5.75%
B) 8.15%
C) 8.51%
D) 10.91%

Correct Answer:

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