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01 - Given the following returns on Stock J and the market during the last five years, what is the beta coefficient of Stock J?
01 - Given the following returns on Stock J and "the market" during the last five years, what is the beta coefficient of Stock J?
Year Stock J Market
1 -13.85% - 8.63%
2 22.90 12.37
3 35.15 19.37
4 12.48 5.73
5 5.25 2.35
A. | 0.92 | |
B. | 1.75 | |
C. | 1.10 | |
D. | 2.24 | |
E. | 1.45 |
02 - Using the beta you get in the previous question, if the riskfree rate is 5%, the expected return on the market is 12%, when the equilibrium exists, what is the expected return of Stock J?
A. | 17.25% | |
B. | 12% | |
C. | 5% | |
D. | 0% | |
E. | 1% |
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