# What is the expected rate of return for a stock that has a beta of 1.0 if the expected return

## Question:

a. 15%.

b. More than 15%.

c. Cannot be determined without the risk-free rate.

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...

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