Question
An investor has $70,000 invested in a stock that has an esitmated beta of 1.25, and another $30,000 invested in the stock of the company
An investor has $70,000 invested in a stock that has an esitmated beta of 1.25, and another $30,000 invested in the stock of the company for which she works. The risk-free rate is 3.2% and the market risk premium is 6.8%. The investor calculates that the required on her portfolio is 11.5%. What is the beta of the company for which she works?
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Financial Reporting And Statement Analysis A Strategic Approach
Authors: Clyde P. Stickney, Paul Brown, James M. Wahlen
5th Edition
032418638X, 978-0324186383
