Multiple Choice
The beta of Elsenore, Inc., stock is 1.6, whereas the risk-free rate of return is 8 percent. If the expected return on the market is 15 percent, then what should investors expect as a return on Elsenore?
A) 11.20%
B) 19.20%
C) 24.00%
D) 32.00%
Correct Answer:
Verified
Correct Answer:
Verified
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