The rate of return on the U.S. government treasury bill is 0.01 and the expected rate of return on the Wilshire 5000 is 0.10. What is the required rate of return for a stock with a Beta 0.84? 0.09

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The rate of return on the U.S. government treasury
bill is 0.01 and the expected rate of return on the
Wilshire 5000 is 0.10. What is the required rate of
return for a stock with a Beta 0.84?
0.09
Transcribed Image Text:The rate of return on the U.S. government treasury bill is 0.01 and the expected rate of return on the Wilshire 5000 is 0.10. What is the required rate of return for a stock with a Beta 0.84? 0.09
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