The risk-free rate of return is 2.5 percent, and the market risk premium is 11 percent. What is the expected rate of return on a stock with a beta of 1.8?
Group of answer choices
23.7
22.3
14.7
19.1
Expected rate=risk free rate+Beta*market risk premium
=2.5+(11*1.8)
which is equal to
=22.3
The risk-free rate of return is 2.5 percent, and the market risk premium is 11 percent....
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