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  3. Study Set
    Introduction to Corporate Finance
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    Exam 7: Risk,return,and the Capital Asset Pricing Model
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    Security I Has a Beta of 1
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Security I Has a Beta of 1

Question 28

Question 28

Multiple Choice

Security I has a beta of 1.3,the risk-free rate is 4%,and the expected return on the market is 11%.What is the expected return for Security I?


A) 15.0%
B) 18.3%
C) 14.6%
D) 13.1%

Correct Answer:

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