The current risk-free rate of return in the economy is 6.5%. In addition, the market rate of return is currently 10%. Given that a company's expected return on common stock is 12.5% what is the company's systemic risk level (beta)? Show your calculations. In addition, describe systemic risk.

Question

Quizplus · Accepted Answer

The Answer of The current risk-free rate of return in the economy is 6.5%. In addition, the market rate of return is currently 10%. Given that a company's expected return on common stock is 12.5% what is the company's systemic risk level (beta)? Show your calculations. In addition, describe systemic risk.

The Current Risk-Free Rate of Return in the Economy Is