The common stock of Alibaba Group has a beta of 0.54 and an expected rate of return
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Question:
The common stock of Alibaba Group has a beta of 0.54 and an expected rate of return of 14.50%. Investors expect the return on the market portfolio this year to be 23.20%. Assuming that the risk-free rate does not change, what would be your expected return on Alibaba stock if the market portfolio return is 25.50%?
a. 20.46%
b. 10.53%
c. 14.31%
d. 15.74%
e. 12.11%
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