Q11 - HSB stock has an expected return of 10.82 percent. The market risk premium is 10.73 percent and the risk-free rat...

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Question

Q11 -

HSB stock has an expected return of 10.82 percent. The market risk premium is 10.73 percent and the risk-free rate is 2.51 pe

Answer 1

Answer #1

Expected rate=risk free rate+Beta*market risk premium

10.82=2.51+Beta*10.73

Beta=(10.82-2.51)/10.73

=0.77(Approx).

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Answer 2

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