Answer:
the expected return for RoseApple's stock is 14%
Explanation:
The computation of the expected rate of return is shown below:
As we know that
Expected return = Risk-free rate of return + Beta × market risk premium
= 2% + 1.50 × 8%
= 2% + 12%
= 14%
Hence, the expected return for RoseApple's stock is 14%
Therefore the above formula is applied to determine the expected return
