Question
A stock with a beta of 0.9 has an expected rate of return of 9%. If the market return this year turns out to be
A stock with a beta of 0.9 has an expected rate of return of 9%. If the market return this year turns out to be 7 percentage points below expectations, what is your best guess as to the rate of return on the stock?(Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)
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Cases in Financial Reporting
Authors: Michael J. Sandretto
1st edition
538476796, 978-0538476799
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