IBC has the same beta as the overall market. If the expected return on the market is 5%, what is the expected return for IBC's stock? O A. Greater than 5%. O B. Less than 5%. O c. The same as 5%. O D. Less than 0%.

IBC has the same beta as the overall market. If the expected return on the market is 5%, what is the expected return for IBC's stock? O A. Greater than 5%. O B. Less than 5%. O c. The same as 5%. O D. Less than 0%.

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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Question

IBC has the same beta as the overall market. If the expected return on the market is 5%, what is the expected return for IBC's stock?
O A. Greater than 5%.
O B. Less than 5%.
O c. The same as 5%.
O D. Less than 0%.

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