Multiple Choice
Suppose you forecast that the market index will earn a return of 12% in the coming year.Treasury bills are yielding 4%.The unadjusted β of Mobil stock is 1.30.A reasonable forecast of the return on Mobil stock for the coming year is _________ if you use a common method to derive adjusted betas.
A) 15.0%
B) 15.5%
C) 16.0%
D) 14.6%
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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