What is the expected market return if the expected return on ...

[newbem]

What is the expected market return if the expected return on Asset X is 20 percent, its beta is 1.5, and the risk free rate is 5 percent?
 
  A) 5.0
  B) 7.5
  C) 15.0
  D) 22.5

Question 2

When computing an interest or growth rate, the rate will increase with an increase in future value, holding present value and the number of periods constant.
 
  Indicate whether the statement is true or false

[parshano]

Answer to Question 1

C

Answer to Question 2

TRUE