Question 16 RWJ 13-2 CF Stock COOL has an expected return of 10.47 %. The expected market return is 8.31% and the risk-free rate is 4.73%. What is asset COOL’s beta?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Question 16

RWJ 13-2  CF

 

Stock COOL has an expected return of 10.47 %.

The expected market return is 8.31% and the risk-free rate is 4.73%.

What is asset COOL’s beta?

Question 17

RWJ 13-4

Joe is an analyst with Pomona Securities. His research shows that CPP Enterprises has an expected return of 12%.

He also estimated the required rate for return using the Security Market Line for CPP Enterprises to be 10.30%.

CPP Enterprises is:

Group of answer choices
Fairly priced
Underpriced
Overpriced
CPP Enterprises is a bad investment

 

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