A stock has an expected return of 11 percent, the risk-free rate is 6.1 percent, and the market risk premium is 4 percent. What is the stock's beta?
A)1.18
B)1.23
C)1.29
D)1.32
E)1.35

Name: A stock has an expected return of 11 percent, the risk-free rate is 6.1 percent, and the market risk premium is 4 percent. What is the stock's beta? A)1.18 B)1.23 C)1.29 D)1.32 E)1.35
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Quizplus · Accepted Answer

E(R_i) = 0.11 = 0.61 + F1F1F1S1F1F1F10_i(0.04); F1F1F1S1F1F1F10_i = 1.23

A Stock Has an Expected Return of 11 Percent, the Risk-Free