A stock has an expected return of 14.3 percent, the risk-free rate is 3.2 percent, and the market risk premium is 8.1 percent. What must the beta of this stock be? O 0.88 O 0.94 O 1.08 O 1.21 O 1.37

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 12P: Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average...
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A stock has an expected return of 14.3 percent, the risk-free rate is 3.2 percent, and the market risk
premium is 8.1 percent. What must the beta of this stock be?
O 0.88
O 0.94
O 1.08
O 1.21
O 1.37
Transcribed Image Text:A stock has an expected return of 14.3 percent, the risk-free rate is 3.2 percent, and the market risk premium is 8.1 percent. What must the beta of this stock be? O 0.88 O 0.94 O 1.08 O 1.21 O 1.37
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