You are considering an investment in Citizens Bank Corp The firm has a beta of 1.6. Currently, U.S.
Treasury bills are yielding 2.75% and the expected return for the S & P 500 is 14%.
What rate of
return should you expect for your investment in Citizens Bank?
A) 15.39% B) 11.15% C) 20.75% D) 16.75%
ANSWER
C
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