The beta of RicciCo.'s stock is 3.2, whereas the risk-free rate of return is 9 percent. If the expected return on the market is 18 percent, then what is the expected return on RicciCo.?
A) 28.80%
B) 37.80%
C) 48.60%
D) 57.60%
Answer: B) 37.80%
Business
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