Question: Calculate the expected return from a stock with a beta coefficient of 1.16 if there is a 11.2% expected rate of return from the market

Calculate the expected return from a stock with a beta coefficient of 1.16 if there is a 11.2% expected rate of return from the market and a risk-free rate of 4.2%. Round the final answer to one decimal place.

a. 4.2%

b. 9.6%

c. 11.2%

d. 12.3%

e. 17.2%

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