The stock of Big Joe's has a beta of 1.14 and an expected return of 11.6%. The risk-free rate of return is 4%. What is the expected return on the market? A. 7.60% B. 8.04% C. 9.33% D. 10.67% E. 12.16%
The stock of Big Joe's has a beta of 1.14 and an expected return of 11.6%. The risk-free rate of return is 4%. What is the expected return on the market? A. 7.60% B. 8.04% C. 9.33% D. 10.67% E. 12.16%
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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![The stock of Big Joe's has a beta of 1.14 and an
expected return of 11.6%. The risk-free rate of
return is 4%. What is the expected return on
the market?
A. 7.60%
B. 8.04%
C. 9.33%
D. 10.67%
E. 12.16%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa83fa9fb-38fc-4194-8314-6f84cc788965%2F83c90b36-4be7-427c-8ce9-5e36c5ac7711%2Fbfzst86_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The stock of Big Joe's has a beta of 1.14 and an
expected return of 11.6%. The risk-free rate of
return is 4%. What is the expected return on
the market?
A. 7.60%
B. 8.04%
C. 9.33%
D. 10.67%
E. 12.16%
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