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The ABC Corp's common stock has a rate of return of 7.8%. Assume the risk-free rate is 3.5%, the expected market return is 6.6%, and

The ABC Corp's common stock has a rate of return of 7.8%. Assume the risk-free rate is 3.5%, the expected market return is 6.6%, and no unsystematic risk affected ABC's return. What is the ABC's beta?

a. 1.39

b. 1.46

c. 4.3

d. 3.10

e. Impossible to calculate without the inflation rate.

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