Multiple Choice
The expected return of a stock is 13 percent, and its beta is 1.08. If the risk-free rate is 5.5 percent and the stock is correctly priced, what is the slope of the security market line?
A) 7.50%
B) 7.38%
C) 5.73%
D) 6.94%
E) 7.09%
Correct Answer:
Verified
Correct Answer:
Verified
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