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I got A but I'm still confused, Do I need the expected return rate to get the answer? Or is there another formula I can use to answer this? Can someone please explain which formula to use? Thank you 10. Stock A has a total return of 13%. Risk-free rate is assumed to be 3%. You observe the market's return to be 8%. What's stock A's beta? 1.25 B. 1.625 C. 2 D. Cannot be calculated from the information given

I got A but I'm still confused, Do I need the expected return rate to get the answer? Or is there another formula I can use to answer this? Can someone please explain which formula to use? Thank you 10. Stock A has a total return of 13%. Risk-free rate is assumed to be 3%. You observe the market's return to be 8%. What's stock A's beta? 1.25 B. 1.625 C. 2 D. Cannot be calculated from the information given

Essentials Of Investments
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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I got A but I'm still confused, Do I need the expected return rate to get the answer? Or is there another formula I can use to answer this? Can someone please explain which formula to use? Thank you 10. Stock A has a total return of 13%. Risk-free rate is assumed to be 3%. You observe the market's return to be 8%. What's stock A's beta? A 1.25 B. 1.625 C. 2 D. Cannot be calculated from the information given
Transcribed Image Text:I got A but I'm still confused, Do I need the expected return rate to get the answer? Or is there another formula I can use to answer this? Can someone please explain which formula to use? Thank you 10. Stock A has a total return of 13%. Risk-free rate is assumed to be 3%. You observe the market's return to be 8%. What's stock A's beta? A 1.25 B. 1.625 C. 2 D. Cannot be calculated from the information given
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