White company stock has a beta of 1.5 amp a required return, Ask an Expert

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problem: White Company stock has a beta of 1.5 & a required return of 15 percent, while Black Company stock has a beta of 1.0 & a required return of 12 percent. The standard deviation of returns for White Company is 10 percent more than the standard deviation for Black Company. find out the expected return on the market portfolio according to the CAPM.

[A] 12%

[B] 13%

[C] 10%

[D] 11%

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M919569

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