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    Foundations of Finance
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    Exam 6: The Meaning and Measurement of Risk and Return
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    Surf and Spray Inc
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Surf and Spray Inc

Question 36

Question 36

Multiple Choice

Surf and Spray Inc.has a beta equal to 1.8 and a required return of 15% based on the CAPM.If the market risk premium is 7.5%,the risk-free rate of return is


A) 4.1%.
B) 3.4%.
C) 2.0%.
D) 1.5%.

Correct Answer:

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