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    Exam 12: An Alternative View of Risk and Return: The Arbitrage Pricing Theory
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    Suppose the JumpStart Corporation's Common Stock Has a Beta of 0.8
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Suppose the JumpStart Corporation's Common Stock Has a Beta of 0.8

Question 50

Question 50

Multiple Choice

Suppose the JumpStart Corporation's common stock has a beta of 0.8. If the risk-free rate is 4% and the expected market return is 9%,the expected return for JumpStart's common stock is:


A) 3.2%.
B) 4.0%.
C) 7.2%.
D) 8.0%.
E) 9.0%.

Correct Answer:

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