Given that r J = 6.3%, r RF = 4.1%, and r M = 9.4%, determine the beta coefficient for Stock J that is consistent with equilibrium.
a. |
0.67 |
|
b. |
0.23 |
|
c. |
2.41 |
|
d. |
0.54 |
|
e. |
0.42 |
Expected return = risk free rate + beta * market risk premium
=>
beta = (6.3% - 4.1%)/(9.4% - 4.1%)
= 0.42
hence choose e)
Beta coefficient Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 14%; rRF = 6.3%; rM = 9.5%. Round your answer to two decimal places.
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Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 10.75%; rRF = 3.15%; rM = 8%. Round your answer to two decimal places.
Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 9.5%; rRF = 5.4%; rM = 13%. Round your answer to two decimal places.
Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 10.25%; rRF = 4.5%; rM = 13%. Round your answer to two decimal places.
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