Question
Assume the CAPM holds and the slope of the Security Market Line (SML) is 17.77%. A stock listed on this stock market has an expected
Assume the CAPM holds and the slope of the Security Market Line (SML) is 17.77%. A stock listed on this stock market has an expected return of 16.94%. The risk-free asset is yielding 2.17%. What is the beta of this stock?
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
