Share
Explore BrainMass

Expected return on Siebling's common stock

Siebling Manufacturing Company's common stock has a beta of .8. If the expected risk-free return is 7% and the market offers a premium of 8% over the risk-free rate, what is the expected return on Siebling's common stock?
a. 7.8%
b. 13.4%
c. 14.4%
d. 8.7%

Solution Preview

Siebling Manufacturing Company's common stock has a beta of .8. If the expected ...

Solution Summary

Response provides the steps to compute the expected return on Siebling's common stock

$2.19