beta of OGDCL is reduced to 0.8%, the return on OGDCL will. a.Increase b.No change c.Decrease d.Uncorrelated Assuming that the average return of the market is 12% and the risk-free rate is 8%. If the beta of OGDCL is 1.25, the cost of equity would be a.6.05% b.7.05% c.8.05% d.9.05%
beta of OGDCL is reduced to 0.8%, the return on OGDCL will. a.Increase b.No change c.Decrease d.Uncorrelated Assuming that the average return of the market is 12% and the risk-free rate is 8%. If the beta of OGDCL is 1.25, the cost of equity would be a.6.05% b.7.05% c.8.05% d.9.05%
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 beta of OGDCL is reduced to 0.8%, the return on OGDCL will.
a.Increase
b.No change
c.Decrease
d.Uncorrelated
Assuming that the average return of the market is 12% and the risk-free rate is 8%. If the beta of OGDCL is 1.25, the
a.6.05%
b.7.05%
c.8.05%
d.9.05%
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