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?
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
