Math Problem Statement
A stock has a beta of 1.28 and a reward-to-risk ratio of 5.89 percent. If the risk-free rate is 4.3 percent, what is the stock's expected return?
Multiple Choice
10.36%
11.38%
11.84%
10.93%
1.24%
Solution
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Math Problem Analysis
Mathematical Concepts
Finance
Capital Asset Pricing Model (CAPM)
Risk and Return Analysis
Formulas
E(R_i) = R_f + β * [E(R_m) - R_f]
Theorems
Capital Asset Pricing Model (CAPM)
Suitable Grade Level
Grades 11-12 (Advanced Finance)
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