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Assume that a security is fairly priced and has an expected rate of return of 0.17. The market expected rate of return is 0.11 and
- Assume that a security is fairly priced and has an expected rate of return of 0.17. The market expected rate of return is 0.11 and the risk-free rate is 0.04. The beta of the stock is
a. 1.25
b. 1.86
c. 1
d. 1.55
e. 0.95
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
