Multiple Choice
The stock of Alpha Company has an expected return of 15.5% and a beta of 1.5,and Gamma Company stock has an expected return of 13.4% and a beta of 1.2.Assume the CAPM holds.What's the expected return on the market?
A) 12%
B) 7%
C) 10.3%
D) 11.2%
Correct Answer:
Verified
Correct Answer:
Verified
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