Multiple Choice
The expected return on the market portfolio is currently 11%. Battmobile Corporation stockholders require a rate of return of 23.0%, and the stock has a beta of 2.5. According to CAPM, determine the risk-free rate.
A) 17.5%
B) 2.75%
C) 3.0%
D) 9.2%
Correct Answer:
Verified
Correct Answer:
Verified
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