Question
2. Stock in Country Road Industries has a beta of 0.97. The market risk premium is 10 percent, and the risk-free is 5.5 percent. What
2. Stock in Country Road Industries has a beta of 0.97. The market risk premium is 10 percent, and the risk-free is 5.5 percent. What is its expected return based on the CAPM? If another stock has an expected return of 20.5%, what must its beta be? (10 points)
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Public Finance In Canada
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
5th Canadian Edition
1259030776, 978-1259030772
