Question
Suppose you are given the following information regarding two stocks: A and B as follows: ErA = 10:5% A = 0:7 ErB = 13% B
Suppose you are given the following information regarding two stocks: A and B as follows: ErA = 10:5% A = 0:7 ErB = 13% B = 1:2
(a) What is the beta of a stock D with an expected rate of return of 12%? From your finding, what can you say about stock D?
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Inside Private Equity
Authors: James M. Kocis, James C. Bachman IV, Austin M. Long III, Craig J. Nickels
1st Edition
0470421894, 978-0470421895
