Business, 16.07.2020 18:01 911wgarcia
A stock has a required return of 9%, the risk-free rate is 4.5%, and the market risk premium is 3%.
a. What is the stock’s beta?
b. If the market risk premium increased to 5%, what would happen to the stock’s required rate of return?
Assume that the risk-free rate and the beta remain unchanged.
Answers: 2
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A stock has a required return of 9%, the risk-free rate is 4.5%, and the market risk premium is 3%....
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