The stock of GBK Corporation has a beta of 0.65. If the risk-free rate of return is 3% and the expected market return is 9%, the expected return for GBK is closest to:
E(RGBK)=Rf+βGBK×[E(RMkt)-Rf]= 0.03 + 0.65 ×(0.09 - 0.03) = 0.069 or 6.9 %.