XYZ Inc.'s stock is one and one-half times as risky as the market on average. Given an expected return on the market of 9%, and a risk-free rate of 1.5%, according to CAPM, what is the expected return for XYZ Inc.? O A. 11.25% O B. 15.00% OC. 20.25% O D. 12.75%

XYZ Inc.'s stock is one and one-half times as risky as the market on average. Given an expected return on the market of 9%, and a risk-free rate of 1.5%, according to CAPM, what is the expected return for XYZ Inc.? O A. 11.25% O B. 15.00% OC. 20.25% O D. 12.75%

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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Please correct answer and step by step solution
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