You have the following expectations about market returns


You have the following expectations about market returns and interest rates on T-bills: T-Bill Rate Market Rate Probability RF Probability RM 0.1 0.02 0.1 -0.1 0.2 0.03 0.2 0.15 0.4 0.06 0.4 0.33 0.2 0.08 0.2 0.30 0.1 0.10 0.1 0.40 The beta of Biqing Company is 0.62. What rate of return should you require on the stock of Biqing Company?

a. 12.69%

b. 12.18%

c. 15.22%

d. 15.78%

e. 17.44%

f. 17.83%

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Financial Management: You have the following expectations about market returns
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