Tanzlin Manufacturing's common stock has a beta of 2.0. If the expected risk-free return is 10% and the expected return on the market is 12%, what is the expected return on the stock?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 4P: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market...
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What is the expected return on the stock on these financial accounting question please give me true answer

Tanzlin Manufacturing's common stock has a beta of 2.0. If the expected risk-free
return is 10% and the expected return on the market is 12%, what is the expected
return on the stock?
Transcribed Image Text:Tanzlin Manufacturing's common stock has a beta of 2.0. If the expected risk-free return is 10% and the expected return on the market is 12%, what is the expected return on the stock?
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