Question
You are holding a stock that has a beta of 1.66 and is currently in equilibrium. The required return on the stock is 12.00% and
You are holding a stock that has a beta of 1.66 and is currently in equilibrium. The required return on the stock is 12.00% and the return on a risk-free asset is 8.0%. What would be the return on the stock if the stock's beta increased to 2.21 while the risk-free rate and market return remained unchanged?
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
