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I am considering investing in a new start-up firm, Herb's Herbs (HH), that produces legal (at least for now) synthetic and herbal mood enhancers.The herbs
I am considering investing in a new start-up firm, Herb's Herbs (HH), that produces legal (at least for now) synthetic and herbal mood enhancers.The herbs are sold at convenience stores and HH expects growth to be strong.HH stock sells for $72/share and just paid a $4 per share dividend. HH expects revenues, earnings, and dividends to grow at 11% annually.Treasury bills offer a 2% annual rate of return and the market risk-premium is 9%.What is the beta () of HH stock?How much riskier is HH than the market?
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