Question
Suppose rRF = 6%, rM = 11%, and rA = 14%. Calculate Stock A's beta. 1) Round your answer to one decimal place. 2) If
Suppose rRF = 6%, rM = 11%, and rA = 14%. Calculate Stock A's beta.
1) Round your answer to one decimal place.
2) If Stock A's beta were 2.4, then what would be A's new required rate of return? Round your answer to one decimal place.
%
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Public Finance An International Perspective
Authors: Joshua E. Greene
1st Edition
9814365041, 978-9814365048
