Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Given the following for Stocki:
PO
Bi
rf
47.50
2.20
0.0600
E(rM) 0.1250
Before the bad news is interpreted to a beta, the stock drops at the
open from 47.5 to 46.15. What is the market's perceived new risk
for the stock as measured by beta, assuming it could still rise to the
P1 target calculated using the CAPM?
O 2.741
2.622
O2.443
O 2.355
2.881
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Transcribed Image Text:Given the following for Stocki: PO Bi rf 47.50 2.20 0.0600 E(rM) 0.1250 Before the bad news is interpreted to a beta, the stock drops at the open from 47.5 to 46.15. What is the market's perceived new risk for the stock as measured by beta, assuming it could still rise to the P1 target calculated using the CAPM? O 2.741 2.622 O2.443 O 2.355 2.881
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