What change you expect in the return for Bella common stock

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Question - Bella, Inc. common stock has a beta of 1.5 The expected return on the market is 12 percent, and the risk-free rate is 5 percent. The Bella common stock is actually expected to earn an annual rate of return of 13 percent. If the return on the market increased by 3%, what change would you expect in the return for Bella common stock?

a. 13%

b. 4.5%

c. 5%

d. 1.5%

Reference no: EM133002601

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