Anchor Incorporated has a beta of 1.0. If the expected return on the m

Anchor Incorporated has a beta of 1.0. If the expected return on the market is 15%, what is the
expected return on Anchor Incorporated’s stock?

A) 18%
B) 14%
C) 15%
D) cannot be determined without the risk-free rate

 

 

ANSWER

C

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