Rate of return-investor expect for stock
What rate of return should an investor expect for a stock that has a beta of 1.25 when the market is expected to yield 14% and Treasury bills offer 6%?
a) 9.2%
b) 11.2%
c) 12.4%
d) 16.0%
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Which of the following statements is correct when Treasury bills yield 7.5% and the market risk premium is 9.5%?
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