Question: Sky Rocket stock has a beta coefficient, , equal to 2.0. The expected market return is 9 percent, and the risk-free rate is 1 percent.

Sky Rocket stock has a beta coefficient, , equal to 2.0. The expected market return is 9 percent, and the risk-free rate is 1 percent. Application of the Capital Asset Pricing Model (CAPM) indicates that the stocks appropriate return should be _________.

Group of answer choices 17.0% 20.0% 16.0% 18.0%

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