Answered: Salalah Oil,has a cost of equity…

Salalah Oil,has a cost of equity capital equal to 22.8 percent. If the risk-free rate of return is 10 percent and the expected return on the market is 18 percent, then what is the firm's beta.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section9.3: Single-stage Decision Problems

Problem 6P

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Question

Salalah Oil,has a cost of equity capital equal to 22.8
percent. If the risk-free rate of return is 10 percent and
the expected return on the market is 18 percent, then
what is the firm's beta.

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