Answer:
9.3 percent
Explanation:
Sarina stable supply stock has a risk premium of 6.2 percent
The inflation rate is 1.7 percent
The risk free rate is 3.1 percent
Therefore the expected return on this stock can be calculated as follows
= risk free rate + risk premium
= 3.1/100 + 6.2/100
= 0.031 + 0.062
= 0.093 × 100
= 9.3 percent
Hence the expected return on this stock is 9.3 percent
