Question
A stock with a beta of 1.2 has an expected rate of return of 14%. If the market return this year turns out to be
A stock with a beta of 1.2 has an expected rate of return of 14%. If the market return this year turns out to be 8 percentage points below expectations, what is your best guess as to the rate of return on the stock? (%) no RF in question.
Stock Return = _____ %
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Financial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th Edition
9781118560952, 1118560957, 978-0470239803
