Question
A stock with a beta of 2.1 has an expected rate of return of 32%. If the market return this year turns out to be
A stock with a beta of 2.1 has an expected rate of return of 32%. If the market return this year turns out to be 13 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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