Solved

Elephant Company Common Stock Has a Beta of 1

Question 70

Multiple Choice

Elephant Company common stock has a beta of 1.2. The risk-free rate is 6%, and the expected market rate of return is 12%. Determine the required rate of return on the security.


A) 7.2%
B) 14.4%
C) 19.2%
D) 13.2%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions