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    Financial Management Theory and Practice Study Set 1
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    Exam 7: Risk, Return, and the Capital Asset Pricing Model
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    Vera Paper's Stock Has a Beta of 1
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Vera Paper's Stock Has a Beta of 1

Question 9

Question 9

Multiple Choice

Vera Paper's stock has a beta of 1.40,and its required return is 12.00%.Dell Dairy's stock has a beta of 0.80.If the risk-free rate is 4.75%,what is the required rate of return on Dell's stock?


A) 8.45%
B) 8.67%
C) 8.89%
D) 9.12%

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