The market risk premium is 10.0 percent, and the risk-free rate is 4.0 percent. If the expected return on a bond is 10.5 percent, what is its beta? (Round answer to 2 decimal places, e.g. 15.25.) Beta of the bond

The market risk premium is 10.0 percent, and the risk-free rate is 4.0 percent. If the expected return on a bond is 10.5 percent, what is its beta? (Round answer to 2 decimal places, e.g. 15.25.) Beta of the bond

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

The market risk premium is 10.0 percent, and the risk-free rate is 4.0 percent. If the expected return on a bond is 10.5 percent, what is
its beta? (Round answer to 2 decimal places, e.g. 15.25.)
Beta of the bond

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