A stock has an expected return of 14.21 percent.The return on the market is 11.8 percent and the risk-free rate of return is 3.2 percent.What is the beta of this stock?
A).65
B)1.09
C)1.42
D)1.28
E)1.78

Name: A stock has an expected return of 14.21 percent.The return on the market is 11.8 percent and the risk-free rate of return is 3.2 percent.What is the beta of this stock? A).65 B)1.09 C)1.42 D)1.28 E)1.78
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Question

Quizplus · Accepted Answer

E(r)= .1421 = .032 + β × (.118 - .032)β = 1.28

A Stock Has an Expected Return of 14