A stock has an expected return of 13.74 percent.The return on the market is 12.68 percent,and the risk-free rate of return is 3.24 percent.What is the beta of this stock?
A)0)658
B)1)093
C)1)402
D)1)112
E)1)780

Name: A stock has an expected return of 13.74 percent.The return on the market is 12.68 percent,and the risk-free rate of return is 3.24 percent.What is the beta of this stock? A)0)658 B)1)093 C)1)402 D)1)112 E)1)780
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Question

Quizplus · Accepted Answer

0.1374 = 0.0324 + β(0.1268 − 0.0324)
β = 1.112

A Stock Has an Expected Return of 13