Question
Currently, the risk-free rate is 4.0 percent. Stock A has an expected return of 9.6 percent and a beta of 1.08. Stock B has an
Currently, the risk-free rate is 4.0 percent. Stock A has an expected return of 9.6 percent and a beta of 1.08. Stock B has an expected return of 13.5 percent. The stocks have equal reward-to-risk ratios. What is the beta of Stock B?
| 1.21 | |
| 1.33 | |
| 1.52 | |
| 1.78 | |
| 1.83 |
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Finance For Managers
Authors: Harvard Business School Press
1st Edition
1578518768, 978-1578518760
