A stock has an expected return of 15.7 percent, the risk-free rate is 6.25 percent, and the market risk premium is 7.6 percent. What must the beta of this stock be? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. Beta
A stock has an expected return of 15.7 percent, the risk-free rate is 6.25 percent, and the market risk premium is 7.6 percent. What must the beta of this stock be? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. Beta
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A stock has an expected return of 15.7 percent, the risk-free rate is 6.25 percent, and the market risk premium is 7.6 percent. What
must the beta of this stock be?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
Beta
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