Question
A stock has a beta of 1.1 has an expected rate of return of 12%. If the market return this year turns out to be
A stock has a beta of 1.1 has an expected rate of return of 12%. If the market return this year turns out to be 9 percentage points below expectations, what is your best guess as to the rate of return on the stock? ( Do not round intermediate calculations. Enter answer as a percent rounded to 1 decimal place)
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
13th edition
132743469, 978-0132743464
