Question
Assume that Umbrella Corp. stock has a required rate of return (rs) = 78. If 30 year T-Bonds are paying a risk-free 2.5% and the
Assume that Umbrella Corp. stock has a required rate of return (rs) = 78. If 30 year T-Bonds are paying a risk-free 2.5% and the S&P 500 (a good proxy for the market return) is returning 8.3%.
Alice wants to know: what is Umbrella's beta?
Answer to two decimal places.
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
