Question: A11 Co. stock has a beta coefficient, , equal to 2.5. The expected market return is 9.0 percent, and the risk-free rate is 1.5 percent.

A11 Co. stock has a beta coefficient, , equal to 2.5. The expected market return is 9.0 percent, and the risk-free rate is 1.5 percent. Application of the Capital Asset Pricing Model (CAPM) indicates that the stocks appropriate return should be _________.

Group of answer choices

20.25%

18.75%

13.75%

24.00%

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