The risk free rate of return is 4 2 percent and the market rate of return is 8 5 percent What is the expected return for a stock with a beta of 1 4 a 10 22 percent b 11 90 percent c 12 70 percent d 16 10 percent ...

The risk-free rate of return is 4.2 percent and the market rate of return is 8.5 percent.

Question:

The risk-free rate of return is 4.2 percent and the market rate of return is 8.5 percent. What is the for a stock with a beta of 1.4?
a. 10.22 percent
b. 11.90 percent
c. 12.70 percent
d. 16.10 percent

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...