If the risk free rate of return (Rf) is 7%, expected return on the market [E(Rm)] is 15%, and the return on stock X is 16%, the beta for the stock X using CAPM is

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Question:

If the risk free rate of return (Rf) is 7%, expected return on the market [E(Rm)] is 15%, and the return on stock X is 16%, the beta for the stock X using CAPM is

A.

0.85

B.

1.00

C.

1.14

D.

1.26

Answer» c. 1.14

Note: The above multiple-choice question is for all general and Competitive Exams in India.