Shares in Crate Co have an expected rate of return of 9% and a beta of 0.8.

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answerhappygod
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Shares in Crate Co have an expected rate of return of 9% and a beta of 0.8.

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Shares in Crate Co have an expected rate of return of 9% and a beta of 0.8. Shares in Lore
Co have a beta of 1.2. The expected market rate of return is 10%.
Using the Capital Asset Pricing Model (CAPM), what is the expected rate of return for shareholders in Lore Co?
A. 8·7%
B. 11·0%
C. 13·0%
D. 13·5%
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