Multiple Choice
Assume a one-factor model where the factor is associated with the overall market.Suppose JSC's common stock has a factor beta of .8,the risk-free rate is 3.2 percent,and the expected market rate of return is 11.2 percent.What is the expected return for JSC stock?
A) 10.25 percent
B) 6.40 percent
C) 7.20 percent
D) 9.60 percent
E) 12.16 percent
Correct Answer:
Verified
Correct Answer:
Verified
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