Suppose the MiniCD Corporation's Common Stock Has a Return of 12%.Assume

Multiple Choice

Suppose the MiniCD Corporation's common stock has a return of 12%.Assume the risk-free rate is 4%, the expected market return is 9%, and no unsystematic influence affected Mini's return.The beta for MiniCD is:

A) 0.89.
B) 1.60.
C) 2.40.
D) 3.00.
E) It is impossible to calculate beta without the inflation rate.