Home Grades Personalized Reviews Discussion Course Materials

Home Grades Personalized Reviews Discussion Course Materials inal Exam-Chapters 7-11,14,16 IBack to Assignment Deadline Today at 09:00 PM A stock has a required return of 11%, the risk-free rate is 7%, and the market risk premium is 3%, what is the stockers beta? 12. O A. 1.33 ?B. 1.12 O C. 1.42 O D. 1.23 Cone without saving Copyright NoticesTerms of UsePrivacy Notice Security Notice Accessibility ? F3 F4 FS F2 F8

Solution

Required return on stock = risk free rate + beta * risk premium

11% = 7% + Beta * 3%

Beta = 1.33