Determine the expected return on the stock

Reference no: EM1353558

A stock has a beta of 1.08 and a standard deviation of 9.6 percent. The risk-free rate is 4.2 percent and the market risk premium is 7.8 percent. What is the expected return on the stock?
a. 11.72 percent
b. 11.77 percent
c. 12.48 percent
d. 12.62 percent

Reference no: EM1353558

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