From the following, find out the expected rate of return when the security is correctly priced : Expected rate on market portfolio 16% Risk free rate of return 7% Beta factor of the security 1.2

CS Executive · Corporate and Management Accounting · PYQS · December 2022
From the following, find out the expected rate of return when the security is correctly priced : Expected rate on market portfolio 16% Risk free rate of return 7% Beta factor of the security 1.2
(A) 24.4%
(B) 26.2%
(C) 15.4%
(D) 17.8%

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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