The risk-free rate is 5%, the beta of Stock A is 1.2, the beta of Stoc
The risk-free rate is 5%, the beta of Stock A is 1.2, the beta of Stock B is 0.8, and the expected return on Stock A is 12.2%. What is the expected return on Stock B?
A) 8.4%
B) 9.2%
C) 9.8%
D) 11.0%
E) 12.2%
ANSWER
C
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