Question
A stock with 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 with 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 your answer as a percent rounded to 1 decimal place.)
Stock return %?
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
