The risk-free rate of return is 3.2 percent and the market risk premium is 10 percent.
Required:
What is the expected rate of return on a stock with a beta of 1.3?
- 13.00 percent
- 8.10 percent
- 14.16 percent
- 16.20 percent
- 7.08 percent
Note: Please show how to work it out.