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Joe Purchased 800 Shares of Robotics Stock at $3 Per

Question 42

Multiple Choice

Joe purchased 800 shares of Robotics Stock at $3 per share on 1/1/09.Bill sold the shares on 12/31/09 for $3.45.Robotics stock has a beta of 1.9,the risk-free rate of return is 4%,and the market risk premium is 9%.The required return on Robotics Stock is


A) 15.0%.
B) 16.5%.
C) 17.6%.
D) 21.1%.

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