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lukranit [14]
3 years ago
12

A stock has an expected return of 16 percent, the risk-free rate is 6.4 percent, and the market risk premium is 7.3 percent.Requ

ired:What must the beta of this stock be? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) Beta
Business
1 answer:
FrozenT [24]3 years ago
4 0

Answer:

The beta of the stock must be = 1.315 (approx).

Explanation:

Considering the following formula, we get:

expected return = 16

Risk free rate = 6.4

Market risk premium = 7.3

expected return=risk-free rate+beta* market risk premium

hence

16 = 6.4 + beta * 7.3

hence beta=(16 - 6.4)/7.3  =1.315(approx).

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Answer:

The correct answer is False.

Explanation:

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Answer:

1. true

Explanation:

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4 0
3 years ago
Pop-Quiz/12 points!!
ICE Princess25 [194]
C is the answer I think
4 0
3 years ago
Given that Jacob's Chocolates Company had beginning retained earnings of $4,000; net income during the period of $10,000; and di
natta225 [31]

Answer:

C. $13,700

Explanation:

Given that;

Beginning retained earnings = $4,000

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2 years ago
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3 years ago
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