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Required: Investors expect the market rate of return this year to be 13.00 %. The expected rate of return on a stock with a beta of 1.6 is currently 20.80 %. If the market return this year turns out to be 11.40%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Revised rate of return %

Required: Investors expect the market rate of return this year to be 13.00 %. The expected rate of return on a stock with a beta of 1.6 is currently 20.80 %. If the market return this year turns out to be 11.40%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Revised rate of return %

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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am. 118.

Required: Investors expect the market rate of return this year to be 13.00 %. The expected rate of return on a stock with a beta of 1.6 is currently 20.80 %. If the market return this year turns out to be 11.40%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Revised rate of return %
Transcribed Image Text:Required: Investors expect the market rate of return this year to be 13.00 %. The expected rate of return on a stock with a beta of 1.6 is currently 20.80 %. If the market return this year turns out to be 11.40%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Revised rate of return %
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