Farrell Motors stock has a beta of 1.3. If the market has an expected return of 9

Question:

Farrell Motors stock has a beta of 1.3. If the market has an expected return of 9 percent and the risk-free rate is 1 percent, what is the expected return of the stock according to the security market line?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...

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