Question: Using the CAPM, calculate the Expected Return for the Nittany Company: Alpha = 2.5%; Beta = 0.8 T-Bill Rate = 5%; S&P 500 average return

Using the CAPM, calculate the Expected Return for the Nittany Company: Alpha = 2.5%; Beta = 0.8 T-Bill Rate = 5%; S&P 500 average return rate = 8%; WACC = 7%.

A. 7.4% B. 8.1% C. 6.3% D. 8.5% E. 9.4%

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