# A stock has an expected return of 11.2 percent

## Question: A stock has an expected return of 11.2 percent, it…

A stock has an expected return of 11.2 percent, its beta is .87, and the risk-free rate is 5.6 percent. What must the expected return on the market be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Market expected return %