Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In a small economy for an island the risk free rate is 7 % but the required market returns are 10 %. Given the information

In a small economy for an island the risk free rate is 7 % but the required market returns are 10 %. Given the information for Stock A below calculate the beta co-efficient. Stock Return Market Return - 5 % + 10 % - 8 % + 15 % + 5 % - 10 %

(a) -0.55 (b) 1.2 (c) 0.9 (d) -0.6 (e) 1.6

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

Private Debt Yield Safety And The Emergence Of Alternative Lending

Authors: Stephen L. Nesbitt

2nd Edition

1119944392, 978-1119944393

More Books

Students also viewed these Finance questions