Question
QUESTION 4 Suppose you forecast that the market index will earn a return of 12% in the coming year. Treasury bills are yielding 4%. The
QUESTION 4
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Suppose you forecast that the market index will earn a return of 12% in the coming year. Treasury bills are yielding 4%. The unadjusted of Mobil stock is 1.30. A reasonable forecast of the return on Mobil stock for the coming year is _________ if you use a common method to derive adjusted betas.
A. 15.0%
B. 15.5%
C. 16.0%
D. 14.6%
E. None of the above
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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
3rd Edition
113849996X, 978-1138499966
