Answered: A stock has a required return of 12%,…

A stock has a required return of 12%, the risk-free rate is 2.5%, and the market risk premium is 5%. a)What is the stock's beta? 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 3P: Suppose that the risk-free rate is 5% and that the market risk premium is 7%. What is the required...

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Question

A stock has a required return of 12%, the risk-free rate is 2.5%, and the market risk premium is 5%.

a)What is the stock's beta? Round your answer to two decimal places.

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