Question
A stock has an expected return of 10 percent, its beta is 1.25, and the expected return on the market is 9 percent. What must
A stock has an expected return of 10 percent, its beta is 1.25, and the expected return on the market is 9 percent. What must the risk-free rate be?
Multiple Choice:
4.75%
5.20%
-1.25%
5.25%
5.00%
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrod Harford, David Stangeland, Andras Marosi
3rd Canadian Edition
0135418178, 978-0135418178
