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If the ICAPM Beta Is 0 6.0% 6.0 \% B) 8.8% 8.8 \%

Question 26

Multiple Choice

If the ICAPM beta is 0.8,and the world market return and risk-free rate are 12% and 5% respectively,then the expected return predicted by the ICAPM is:


A) 6.0% 6.0 \%
B) 8.8% 8.8 \%
C) 10.6%10.6 \%
D) 12.4% 12.4 \%

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