Question: Using the CAPM, calculate the Expected Return for the Nittany Company: Alpha = 1.5%; Beta = 1.1; T-Bill Rate = 3%; S&P 500 average return

Using the CAPM, calculate the Expected Return for the Nittany Company: Alpha = 1.5%; Beta = 1.1; T-Bill Rate = 3%; S&P 500 average return rate = 8%; WACC = 8%

Group of answer choices

a) 6.3%

d) 8.5%

e) 3.1%

c) 9.7%

b) 7.8%

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