Which one of the following stocks is correctly priced if the risk-free rate of return is 4.1 percent and the market risk premium is 8.6 percent? Stock Beta Expected Return A .81 7.88% B 1.57 12.69 C 1.38 11.35 D 1.37 11.99 E .95 12.27
Which one of the following stocks is correctly priced if the risk-free rate of return is 4.1 percent and the market risk premium is 8.6 percent? Stock Beta Expected Return A .81 7.88% B 1.57 12.69 C 1.38 11.35 D 1.37 11.99 E .95 12.27
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 2P: AA Corporations stock has a beta of 0.8. The risk-free rate is 4%, and the expected return on the...
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Which one of the following stocks is correctly priced if the risk-free
Stock | Beta | Expected Return |
---|---|---|
A | .81 | 7.88% |
B | 1.57 | 12.69 |
C | 1.38 | 11.35 |
D | 1.37 | 11.99 |
E | .95 | 12.27 |
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