Question: If a stock has a beta coefficient, equal to 1.20, the risk premium associated with the market is 8 percent, and the risk-free rate is
If a stock has a beta coefficient, equal to 1.20, the risk premium associated with the market is 8 percent, and the risk-free rate is 3 percent, application of the capital asset pricing model indicates the appropriate return should be
| 12.6% | |
|
| 9.8% |
|
| 9.0% |
|
| 14% |
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