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Question
Dinner Foods stock has a beta of 1.45 and an expected return of 13.43 percent. Edwards' Meals stock has a beta of .95 and an expected return of 10.27 percent. Assume that both stocks are correctly priced. Given this, the risk-free rate is _____ percent and the market rate of return is _____ percent.A. 4.02; 11.53
B. 4.09; 12.35
C. 4.10; 11.53
D. 4.27; 10.59
E. 4.41; 10.25
Answer
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