Multiple Choice
Elephant Company common stock has a beta of 1.2.The risk-free rate is 6 percent and the expected market rate of return is 12 percent.Determine the required rate of return on the security.
A) 7.2%
B) 14.4%
C) 19.2%
D) 13.2%
Correct Answer:
Verified
Correct Answer:
Verified
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