Question
Stock A has an expected return of 17.62% and a beta of 2.43. Stock B has an expected return of 12.64% and beta of 1.09.
Stock A has an expected return of 17.62% and a beta of 2.43. Stock B has an expected return of 12.64% and beta of 1.09. Both stocks have the same reward-to-risk ratio. What is the risk-free rate?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
