What is the expected rate of return on soils stock is this


You are considering the purchase of Superior Oil International, Ltd. (stock symbol SOIL) common stock. You consult Yahoo Finance and find that the stock has a β (beta) of 2.0. Further research indicates that the current risk free rate of return is 4.0% and the expected return on the entire stock market is 14%.

Use the Capital Asset Pricing Model to find the following:

What is the expected rate of return on SOIL's stock?___________________

What is the Market Risk Premium? _______________________

Is this investment more or less risky than the overall market? _______________________

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Financial Management: What is the expected rate of return on soils stock is this
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