BJB,Inc.stock has an expected return of 15.15 percent.The risk-free rate is 3.8 percent and the market risk premium is 8.6 percent.What is the stock's beta?
A)1.19
B)1.21
C)1.32
D)1.48
E)1.62

Name: BJB,Inc.stock has an expected return of 15.15 percent.The risk-free rate is 3.8 percent and the market risk premium is 8.6 percent.What is the stock's beta? A)1.19 B)1.21 C)1.32 D)1.48 E)1.62
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Quizplus · Accepted Answer

E(R) = 0.1515 = 0.038 + β(0.086)β = 1.32

BJB,IncStock Has an Expected Return of 15