Answered: The beta =

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Finance

The beta =

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 2P: AA Corporations stock has a beta of 0.8. The risk-free rate is 4%, and the expected return on the...

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Question

A stock’s expected return = 16.3%. The market return = 10.8%. The risk-free rate = 3.8%. The beta =?
A) .94 B) 1.28 C) 1.31 D) 1.62 E) 1.79

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