Question
The monthly rate of return on T-bills is 1%. The market went up this month by 1.5%. AmbChaser, Inc. (AC), which has an equity beta
The monthly rate of return on T-bills is 1%. The market went up this month by 1.5%. AmbChaser, Inc. (AC), which has an equity beta of 2, surprisingly just won a lawsuit that awards it $1 million immediately. If the original value of AC equity were $100 million, what would you guess was the rate of return of its stock this month?
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Business Mathematics In Canada
Authors: Ernest Jerome
7th edition
978-0070009899
