Question
According to the CAPM, the required return on Company A's equity should be 12.3%. The risk-free rate of return is 4.5%, and the expected return
According to the CAPM, the required return on Company A's equity should be 12.3%. The risk-free rate of return is 4.5%, and the expected return on the total market is 11%. What must be the beta on Company A's stock? Please show work.
A. 1.0
B. 1.1
C. 1.2
D. 1.3
E. 1.4
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Principles Of Finance
Authors: Scott Besley, Eugene F. Brigham
3rd Edition
0324232624, 9780324232622
