Problem:
A stock has a beta of 1.68, the expected return on the market is 14.72, and the risk-free rate is 4.65.
Required:
Question: What must the expected return on this stock be?
- 15.67 percent
- 16.75 percent
- 17.10 percent
- 18.46 percent
- 21.57 percent
Note: Please provide through step by step calculations.