Question
The risk-free rate is 6.5%, the market risk premium is 6% and the required rate of return is 16.7%. Then the the systematic risk of
The risk-free rate is 6.5%, the market risk premium is 6% and the required rate of return is 16.7%. Then the the systematic risk of a firm is ......, and the asset is characterized as ........ .
| A. | 1.7; aggressive.
| |
| B. | 1.7; defensive
| |
| C. | 17.52%
| |
| D. | 0.102; defensive | |
| E. | 1 because the market is assumed efficient; defensive |
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Public Finance Fundamentals
Authors: K. Moeti
3rd Edition
148512946X, 9781485129462
