Problem 12-3 Using Beta (LO1) A stock with a beta of 1.2 has an expected rate of return of 14%. If the market return this year turns out to be 8 percentage points below expectations, what is your best guess as to the rate of return on the stock? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place. Stock return %
Problem 12-3 Using Beta (LO1) A stock with a beta of 1.2 has an expected rate of return of 14%. If the market return this year turns out to be 8 percentage points below expectations, what is your best guess as to the rate of return on the stock? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place. Stock return %
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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Transcribed Image Text:Problem 12-3 Using Beta (LO1)
A stock with a beta of 1.2 has an expected rate of return of 14%. If the market return this year turns out to be 8 percentage points below
expectations, what is your best guess as to the rate of return on the stock?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.
Stock return
%
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