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A stock has an expected return of 18.00%. The risk-free rate is 2.44% and the market risk premium is 6.20%. What is the ß of

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Answer #1
Expected return on a stock = Risk free rate + Beta * Market risk premium
18.00% = 2.44% + Beta * 6.20%
18.00% - 2.44% = Beta * 6.20%
15.56% = Beta * 6.20%
Beta = 15.56% / 6.20% 2.51
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