Multiple Choice
Suppose the beta of Microsoft is 1.13,the risk-free rate is 3%,and the market risk premium is 8%.Calculate the expected return for Microsoft.
A) 12.04%
B) 15.66%
C) 13.94%
D) 8.65%
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q42: One would expect a stock with a
Q43: Assume the following data for a stock:
Q43: Risk-free U.S. Treasury bills have a beta
Q46: By combining lending and borrowing at the
Q49: If the market risk premium is 8%,then
Q50: Florida Company (FC)and Minnesota Company (MC)are both
Q62: The distribution of returns, measured over a
Q65: The beta of the market portfolio is<br>A)0.0.<br>B)+0.5.<br>C)−1.0.<br>D)+1.0.<br>
Q74: The beta of Treasury bills is<br>A)+1.0.<br>B)+0.5.<br>C)−1.0.<br>D)0.0.<br>
Q81: The capital asset pricing model (CAPM)states which