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Consider the single-index model. The alpha of a stock is 3.00%. The return on the market index is 12.00%. The risk-free rate of return is 5.50%. The stock earns a return that exceeds the risk-free rate by 6.50%, and there are no firm-specific events affecting the stock performance. What is the beta of the stock? (Round your answer to 2 decimal places.) Beta 0.69 X

Consider the single-index model. The alpha of a stock is 3.00%. The return on the market index is 12.00%. The risk-free rate of return is 5.50%. The stock earns a return that exceeds the risk-free rate by 6.50%, and there are no firm-specific events affecting the stock performance. What is the beta of the stock? (Round your answer to 2 decimal places.) Beta 0.69 X

Essentials Of Investments
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
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Consider the single-index model. The alpha of a stock is 3.00%. The return on the market index is 12.00%. The risk-free rate of return is 5.50%. The stock earns a return that exceeds the risk-free rate by 6.50%, and there are no firm-specific events affecting the stock performance. What is the beta of the stock? (Round your answer to 2 decimal places.) Beta 0.69 X
Transcribed Image Text:Consider the single-index model. The alpha of a stock is 3.00%. The return on the market index is 12.00%. The risk-free rate of return is 5.50%. The stock earns a return that exceeds the risk-free rate by 6.50%, and there are no firm-specific events affecting the stock performance. What is the beta of the stock? (Round your answer to 2 decimal places.) Beta 0.69 X
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