Multiple Choice
Bell Weather, Inc. has a beta of 1.25. The return on the market portfolio is 12.5%, and the risk-free rate is 5%. According to CAPM, what is the required return on this stock?
A) 20.62%
B) 9.37%
C) 14.38%
D) 15.62%
Correct Answer:
Verified
Correct Answer:
Verified
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