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    Corporate Finance Study Set 3
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    Exam 11: Return and Risk: the Capital Asset Pricing Model Capm
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    PPO Stock Has a Beta of 1
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PPO Stock Has a Beta of 1

Question 62

Question 62

Multiple Choice

PPO stock has a beta of 1.12 and an expected return of 12.64 percent.The risk-free rate of return is 3.85 percent.What is the expected return on the market?


A) 7.85%
B) 8.04%
C) 11.62%
D) 11.70%
E) 12.16%

Correct Answer:

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