9. The common stock of Jensen Shipping has an expected return of 14.7 percent. The return on the market is 10.8 percent and the risk-free rate of return is 3.8 percent. What is the beta of this stock?
=1.56
-Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.
CAPM formula
Expected Return= Risk Free Rate + Beta (Return on Market - Risk free rate)
0.147=0.038+ Beta(0.108-0.038)
Beta= 0.109/0.07
Beta = 1.56
Thanks
Let me know if you need any explanation.
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