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    Exam 11: Return and Risk: the Capital Asset Pricing Model Capm
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    The Stock of Big Joe's Has a Beta of 1
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The Stock of Big Joe's Has a Beta of 1

Question 50

Question 50

Multiple Choice

The stock of Big Joe's has a beta of 1.14 and an expected return of 11.6%. The risk-free rate of return is 4%. What is the expected return on the market?


A) 7.60%
B) 8.04%
C) 9.33%
D) 10.67%
E) 12.16%

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