Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

if a stock has a required return of 12%, and the risk-free rate and market return is 3% and 5%, respectively. Then the stock's beta

if a stock has a required return of 12%, and the risk-free rate and market return is 3% and 5%, respectively. Then the stock's "beta" is:

A. 1.5

B. 2.5

C. 3.5

D. 4.5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Economic Growth Volume 2A

Authors: Philippe Aghion , Steven Durlauf

1st Edition

0444535462,0444535470

More Books

Students also viewed these Finance questions