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 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
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 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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