Question: 29 Using the CAPM, calculate the Expected Return for the Happy Valley Company: Alpha = 1.2%; Beta = 1.4 T-Bill Rate = 2.0%; S&P 500

29 Using the CAPM, calculate the Expected Return for the Happy Valley Company: Alpha = 1.2%; Beta = 1.4 T-Bill Rate = 2.0%; S&P 500 average return rate = 8.0%; WACC = 9%.

  1. 6.7%

  2. 7.2%

  3. 9.3%

  4. 10.4%

  5. 13.1%

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