Question: The expected return on Golden Inc based on CAPM is 11.875%. The risk free rate of interest is 2.5% and the expected return on the

  • The expected return on Golden Inc based on CAPM is 11.875%. The risk free rate of interest is 2.5% and the expected return on the market is 10%. According to the capital asset pricing model, which of the following comes closest to the beta of Golden?
    • 1.25
    • 1.35
    • 1.45
    • 1.55
    • 1.65

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