Question
The covariance between Stock C and the market is 0.0569 and the variance of the market is 0.0475. The risk-free rate is 3.06% and the
The covariance between Stock C and the market is 0.0569 and the variance of the market is 0.0475. The risk-free rate is 3.06% and the expected market risk premium is 7.4%. What is the beta and expected return of Stock C?
A. 1.20 and 11.92%
B. 1.25 and 12.31%
C. 0.83 and 6.68%
D. 0.83 and 9.24%
E. 1.20 and 8.26%
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Essential Finance Guide
Authors: DK Publishing
1st Edition
078948157X, 978-0789481573
