A stock has an expected return of 15.0 percent,the risk-free rate is 3.2 percent,and the market risk premium is 8.1 percent.What must the beta of this stock be?
A)0.88
B)0.94
C)1.08
D)1.31
E)1.46

Name: A stock has an expected return of 15.0 percent,the risk-free rate is 3.2 percent,and the market risk premium is 8.1 percent.What must the beta of this stock be? A)0.88 B)0.94 C)1.08 D)1.31 E)1.46
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Question

Quizplus · Accepted Answer

E(R) = 0.15 = 0.032 + β(0.081)β = 1.46

A Stock Has an Expected Return of 15