Problema stock has a beta of 155 the expected return on the, Ask an Expert

Accounting

Problem:

A stock has a beta of 1.55, the expected return on the market is 12 percent, and the risk-free rate is 4.8 percent.

Required:

Question: What must the expected return on this stock be?

15.16%
16.6%
15.96%
23.4%
16.76%

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169590

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