Currently, the risk-free rate is 3.5 percent. Stock A has an expected return of 9.6 percent and a beta of 1.08. Stock B has an expected return of 13.5 percent. The stocks have equal reward-to-risk ratios. What is the beta of stock B?
A) 1.21
B) 1.33
C) 1.52
D) 1.68
E) 1.77
Correct Answer:
Verified
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