Currently, the risk-free rate is 3.2 percent.Stock A has an expected return of 11.4 percent and a beta of 1.11.Stock B has an expected return of 13.7 percent.The stocks have equal reward-to-risk ratios.What is the beta of Stock B?
A)1.27
B)1.33
C)1.36
D)1.08
E)1.42

Question

Quizplus · Accepted Answer

The Answer of Currently, the risk-free rate is 3.2 percent.Stock A has an expected return of 11.4 percent and a beta of 1.11.Stock B has an expected return of 13.7 percent.The stocks have equal reward-to-risk ratios.What is the beta of Stock B?
A)1.27
B)1.33
C)1.36
D)1.08
E)1.42

Currently, the Risk-Free Rate Is 3