The expected return for a stock is 20%. The current risk-free rate is 3.7% and the expected return of S&P 500 index is 13.5%. What is the beta of this stock if you use the CAPM model? 1.42 1.66 2.36 1.98 2.21

The expected return for a stock is 20%. The current risk-free rate is 3.7% and the expected return of S&P 500 index is 13.5%. What is the beta of this stock if you use the CAPM model? 1.42 1.66 2.36 1.98 2.21

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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The expected return for a stock is 20%. The current risk-free rate is 3.7% and the expected return of S&P
500 index is 13.5%. What is the beta of this stock if you use the CAPM model?
1.42
1.66
2.36
1.98
O 2.21

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