Question:
The stock of GBK Corporation has a beta of 0.65. If the risk-free rate of return is 3% and the expected market return is 9%, the expected return for GBK is closest to:
A. 10.8%.
B. 3.9%.
C. 6.9%.
Answer = C
CFA Level I
"Portfolio Risk and Return: Part II," Vijay Singal Section 3.2.6
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