Suppose the Barges Corporation's common stock has an expected return of 12%. Assume that the risk free

Question:

Suppose the Barges Corporation's has an of 12%. Assume that the risk free rate is 5%, and the market risk premium is 6%. If no unsystematic influence affected Barges return, the beta for Barge is:______ ?
a. 1.00
b. 1.17
c. 1.20
d. 2.50
e. It is impossible to calculate with the information given

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...