Question

The risk-free rate of return is 3.5% and the market risk premium is 7.5%. What is the expected rate of return on a stock with a beta of 1.28?

Answer 1

13.1%

Step-by-step explanation:

Expected return = risk free rate + ( beta × Market premium)

3.5% + (1.28 × 7.5) = 13.1%

I hope my answer helps you