Question

The stock of Healthy Eating, Inc., has a beta of .88. The risk-free rate is 3.8 percent and the market return is 9.6 percent. What is the expected return on Healthy Eating's stock?
A. 6.25 percent
B. 6.07 percent
C. 8.90 percent
D. 11.15 percent
E. 11.47 percent

Answer

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