Given the following information, use the CAPM to calculate the beta of the stock. The required rate of return of the stock is 12%, the Risk-free interest rate is 4% and the market return is 10%.
Given the following information, use the CAPM to calculate the beta of the stock. The required rate of return of the stock is 12%, the Risk-free interest rate is 4% and the market return is 10%.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter6: Risk And Return
Section: Chapter Questions
Problem 14P: You have observed the following returns over time:
Assume that the risk-free rate is 6% and the...
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