solution
The stock of Martin Industries has a beta of 1.60. The risk-free rate of return is 3.0 percent and the market risk premium is 8 percent. What is the expected rate of return on Martin Industries stock?
(A) 11.0 percent
(B) 14.1 percent
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Order Paper Now(C) 16.5 percent
(D) 15.8 percent
(E) 16.0 percent
24. The linear relation between an asset’s expected return and its beta coefficient is the:
(A) reward-to-risk ratio.
(B) portfolio weight.
(C) portfolio risk.
(D) security market line.
(E) market risk premium.
25. A portfolio contains two assets. The first asset comprises 60% of the portfolio and has a beta of 1.0. The other asset has a beta of 1.8. The portfolio beta is
(A) 1.35
(B) 1.38
(C) 1.32
(D) 1.40
(E) 1.50
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