. If the risk-free return (Rf) is 6%, Beta (β) is 1.5, and the market rate of return (Km) is 10%, what is the expected rate of return?

Correct option is B

Using the Capital Asset Pricing Model (CAPM):

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Additional Knowledge
· A higher Beta (>1) means the stock is more volatile than the market.
· A lower Beta (<1) means the stock is less volatile.