A stock has an expected return of 12 percent, the risk-free rate is 5 percent, and the market risk premium is 7 percent. What must the beta of this stock be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Beta of stock
A stock has an expected return of 12 percent, the risk-free rate is 5 percent, and the market risk premium is 7 percent. What must the beta of this stock be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Beta of stock
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 14PROB
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A stock has an expected return of 12 percent, the risk-free rate is 5 percent, and the market risk premium is 7 percent. What must the beta of this stock be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Beta of stock
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