The Risk-Free Rate Is 3

Multiple Choice

The risk-free rate is 3.4 percent and the expected return on the market is 10.8 percent.Stock A has a beta of 1.18.For a given year,stock A returned 13.6 percent while the market returned 11.8 percent.The systematic portion of the unexpected return was ________ percent and the unsystematic portion was ________ percent.

A) 1.045; 0.207
B) 1.145; 0.126
C) 1.180; 0.288
D) 1.344; 1.443
E) 1.500; 1.449