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Elan Coil [88]
2 years ago
8

A stock has an expected return of 13. 24 percent, the risk-free rate is 4. 4 percent, and the market risk premium is 8. 98 perce

nt. what is the stock's beta?
Business
1 answer:
ipn [44]2 years ago
3 0

A stock has an expected return of 13. 24 percent, the risk-free rate is 4. 4 percent, and the market risk premium is 8. 98 percent. 0.75 is the stock's beta.

Calculate the beta for stock using the CAPM approach as follows:

Cost of common stock = Risk-free rate + Beta × Market risk premium

13% 7% + Beta x8%

13% 7% Beta × 8%

6% = Beta x8%

6% 8% Beta = =

=0.75

Therefore, the beta for stock using the CAPM approach is 0.75.

Market risk is the potential for loss to individuals or other companies as a result of factors that affect the overall performance of an investment in financial markets.

Learn more about market risk at

brainly.com/question/25821437

#SPJ4

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Answer:

$35,800

Explanation:

Gross Profit = Net sales - Cost of goods sold

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Crane Company purchases a patent for $161,900 on January 2, 2022. Its estimated useful life is 5 years. (a) Prepare the journal
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Answer:

Explanation:

The journal entry is shown below:

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The computation is shown below"

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Jabiru Corporation purchased a 20% interest in Fish Company common stock on January 1, 2013 for $300,000. This investment was ac
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Answer:

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As for the information given:

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