Question
Suppose Jada Corps stock beta is 1.4. If the current market risk premium is 8% and the risk-free rate is 2%, what is Jada Corps
Suppose Jada Corps stock beta is 1.4. If the current market risk premium is 8% and the risk-free rate is 2%, what is Jada Corps required return?
10.40% | ||
11.20% | ||
14.00% | ||
13.20% | ||
None of these |
The expected return of the S&P 500 Index is 10%. According to stock analysts, Ingrid Corp stock has an expected return of 15%. You should buy this stock if you believe the following:
You should buy the stock, regardless of the stocks beta. | ||
You should never buy the stock. | ||
Ingrid Corps beta is 2.1. | ||
Not enough information given to make an informed decision. | ||
Ingrid Corps beta is 1.6. |
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