Suppose that the S&P 500 is expected to return 11 percent in the next year and T-bills are yielding 2.3 percent. If the beta of stock A is 1.25, then the expected (or required) return for stock A is: Multiple Choice O O O 13.18% 11.00% 10.88% None of these answers is correct 16.05%
Suppose that the S&P 500 is expected to return 11 percent in the next year and T-bills are yielding 2.3 percent. If the beta of stock A is 1.25, then the expected (or required) return for stock A is: Multiple Choice O O O 13.18% 11.00% 10.88% None of these answers is correct 16.05%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Suppose that the S&P 500 is expected to return 11 percent in the next year and T-bills are yielding 2.3 percent. If the beta of stock A is 1.25, then the
expected (or required) return for stock A is:
Multiple Choice
O
13.18%
11.00%
10.88%
None of these answers is correct
16.05%
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