The returns from the past 13 quarters on Mercantile Bank Corporation and the market are listed below.

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a. What is the beta of Mercantile Bank Corporation stock?

b. Is Mercantile’s beta higher or lower than the beta of the average stock?

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Corporate Finance With Powerweb

ISBN: 9780072503630

6th Edition

Authors: Stephen A. Ross

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Question Posted: May 27, 2024 02:11 AM

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The returns from the past 13 quarters on Mercantile Bank Corporation and the market are listed below.

Question:

Mercantile Market -0.009 0.051 0.023 0.058 -0.001 -0.020 -0.045 -0.050 0.085 0.071 0.000 0.012 -0.080 -0.075 0.020 0.050 0.125 0.120 0.110 0.049 -0.100 -0.030 0.040 0.028

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