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Question
The risk-free rate is 3.4 percent and the expected return on the market is 10.8 percent. Stock A has a beta of 1.18. For a given year, stock A returned 13.6 percent while the market returned 11.8 percent. The systematic portion of the unexpected return was _____ percent and the unsystematic portion was _____ percent.A. 1.045; 0.207
B. 1.145; 0.126
C. 1.180; 0.288
D. 1.344; 1.443
E. 1.500; 1.449
Answer
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