Answered: A stock has a beta of .89 and an…

A stock has a beta of .89 and an expected return of 9.2 percent. If the stock's reward-to-risk ratio is 6.17 percent, what is the risk-free rate?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 12P: Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average...

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A stock has a beta of .89 and an expected return of 9.2 percent. If the stock's reward-to-risk ratio is 6.17 percent, what is the risk-free rate?

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