Question
QUESTION 8 Consider the single-index model. The alpha of a stock is 0%. The return on the market index is 10%. The risk-free rate of
QUESTION 8
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Consider the single-index model. The alpha of a stock is 0%. The return on the market index is 10%. The risk-free rate of return is 5%. The stock earns a return that exceeds the risk-free rate by 5% and there are no firm-specific events affecting the stock performance. The of the stock is _______.
A. 0.67
B. 0.75
C. 1.0
D. 1.33
E. None of the above
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Foundations In Personal Finance
Authors: Dave Ramsey
College Edition
1936948001, 978-1936948000
