Stock A has a risk premium of 4.3 percent. If Treasury bills yield 2.0 percent and the expected return on the market is 7.3 percent, what is the stock's beta coefficient? Round your answer to two decimal places.
Stock A has a risk premium of 4.3 percent. If Treasury bills yield 2.0 percent and the expected return on the market is 7.3 percent, what is the stock's beta coefficient? Round your answer to two decimal places.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 12P: Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average...
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Transcribed Image Text:Stock A has a risk premium of 4.3 percent. If Treasury bills yield 2.0 percent and the expected return on the market is 7.3 percent, what is the stock's beta coefficient? Round your answer to two
decimal places.
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