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Basic Question 4 of 11
Suppose the Technee Corporation's common stock has a beta of 1.2. If the risk-free rate is 5% and the expected market return is 8%, the expected return for Technee's common stock is ______.
B. 6.0%
C. 8.6%
A. 3.0%
B. 6.0%
C. 8.6%
User Contributed Comments 3
| User | Comment |
|---|---|
| mattg | E(Rstock)=Rf+(E(Rm-Rf) x Beta(stock) |
| davcer | the beta is higher than 1, so the only possible answer is C |
| ldfrench | CAPM |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
calculate and interpret beta
CFA® 2025 Level I Curriculum, Volume 2, Module 2.