Multiple Choice
Siebling Manufacturing Company's common stock has a beta of .8. If the expected risk-free return is 2% and the market offers a premium of 8% over the risk-free rate, what is the expected return on Siebling's common stock?
A) 7.8%
B) 13.4%
C) 14.4%
D) 8.4%
Correct Answer:
Verified
Correct Answer:
Verified
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