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Given the following for Stocki: PO 45.50 Bi 0.90 rf 0.0700 E(rm) 0.1600 Before the bad news is interpreted to a beta, the stock drops
Given the following for Stocki: PO 45.50 Bi 0.90 rf 0.0700 E(rm) 0.1600 Before the bad news is interpreted to a beta, the stock drops at the open from 45.5 to 44.2. What is the market's perceived new risk for the stock as measured by beta, assuming it could still rise to the P1 target calculated using the CAPM? O 1.276 1.219 1.156 1.414 1.342
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