Multiple Choice
The risk-free rate and the expected market rate of return are 0.056 and 0.125, respectively. According to the capital asset pricing model (CAPM) , the expected rate of return on a security with a beta of 1.25 is equal to
A) 0.142.
B) 0.144.
C) 0.153.
D) 0.134.
E) 0.117.
Correct Answer:
Verified
Correct Answer:
Verified
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