Question $28$

$3$ pts

Company A has a beta of $1\mathrm{.}5$ and the return on the market portfolio is $10\%.$ What is the expected return of company $A$ if the risk$-$free rate is $4\%?$ Do not round your intermediate calculations.

$11\mathrm{.}5\%$

$7\mathrm{.}0\%$

$6\mathrm{.}4\%$

$13\mathrm{.}0\%$

$8\mathrm{.}0\%$