If the expected return on a stock is 6 per cent. Risk free rate of return is 2 per cent and market return is 7 percent. What must be the 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
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Q6
If the expected return on a stock is 6 per
cent. Risk free rate of return is 2 per cent and
market return is 7 percent. What must be the
Beta?
If the value of expected return Ahli Bank 7 per
cent, if Beta is 1.6 and market return is 8 per
cent. What must be the risk free rate?
If the expected return on a stock is 7.5 per
cent, if the beta is 0.4 and risk free rate of
return is 4 per cent. What must be the return
on the market?
Transcribed Image Text:If the expected return on a stock is 6 per cent. Risk free rate of return is 2 per cent and market return is 7 percent. What must be the Beta? If the value of expected return Ahli Bank 7 per cent, if Beta is 1.6 and market return is 8 per cent. What must be the risk free rate? If the expected return on a stock is 7.5 per cent, if the beta is 0.4 and risk free rate of return is 4 per cent. What must be the return on the market?
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