A stock has an expected return of 14.2 percent, the risk-free rate is 6.5 percent, and the market risk premium is 7.7 percent. What must the beta of this stock be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Beta of stock

A stock has an expected return of 14.2 percent, the risk-free rate is 6.5 percent, and the market risk premium is 7.7 percent. What must the beta of this stock be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Beta of stock

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A stock has an expected return of 14.2 percent, the risk-free rate is 6.5 percent, and the
market risk premium is 7.7 percent. What must the beta of this stock be? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Beta of stock

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