What will happen to expected return on stock with beta

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Reference no: EM131354538

What will happen to the expected return on a stock with a beta of 1.5 and a market risk premium of 9% if the Treasury bill yield increases from 3 to 5%? (assuming the market risk premium is not affected by the change in T-bill yield) a. The expected return will remain unchanged. b. The expected return will increase by 1.0%. c. The expected return will increase by 2.0%. d. The expected return will increase by 3.0%. e. None of the above

Reference no: EM131354538

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