Farm Tractors, Inc

Multiple Choice

Farm Tractors, Inc., stock has a beta of 1.02 and an expected return of 12.8 percent. The risk-free rate is 3.9 percent. What is the market rate of return?

A) 6.67 percent
B) 8.90 percent
C) 9.08 percent
D) 11.57 percent
E) 12.63 percent