BJB, Inc. stock has an expected return of 12.7 percent. The risk-free rate is 2.3 percent and the market risk premium is 5.7 percent. What is the stock's beta?
Using CAPM Model,
Expected Rate = Rf + Beta(Market Risk Premium)
0.127 = 0.023 + Beta(0.057)
Beta = 1.82
BJB, Inc. stock has an expected return of 12.7 percent. The risk-free rate is 2.3 percent...
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