Question
Consider the single-factor APT. Stocks A and B have expected returns of 11% and 15% respectively. The risk free rate of return is 5%. Stock
Consider the single-factor APT. Stocks A and B have expected returns of 11% and 15% respectively. The risk free rate of return is 5%. Stock B has a beta of 0.90. If arbitrage opportunities are ruled out, stock A has a beta of
a. 0.69
b. 0.54
c. 0.47
d. 0.75
e. 1.30
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Business Analysis And Valuation Using Financial Statements
Authors: Krishna G Palepu, Paul M Healy
4th Edition
032430286X, 9780324302868
