The equilibrium expected return on an asset is 14%, the risk-free rate

The equilibrium expected return on an asset is 14%, the risk-free rate is 4% and the return on the market portfolio is 12%. What is the beta of the asset?

A) 1.10
B) 1.15
C) 1.20
D) 1.25
E) 1.30

 

 

ANSWER

D

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