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A stock has an expected return of 11 percent, the risk-free rate is 6.1 percent, and the market risk premium is 4 percent. Calculate the stock's beta.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A stock has an expected return of 11 percent, the risk-free rate is 6.1 percent, and the market risk premium is 4 percent.
Calculate the stock's beta.

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