Question
Assume the market follows a single index model, the index has an expected return of 15% and the risk-free rate is 5%. For a stock
Assume the market follows a single index model, the index has an expected return of 15% and the risk-free rate is 5%. For a stock with a risk premium of 12% and an abnormal return of 4%, what is the beta of this stock?
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Public Finance
Authors: Richard W. Tresch
4th Edition
0128228644, 978-0128228647
