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The risk-free rate is 2.29 percent, the market rate is 6.72 percent, and the expected return on a stock is 9.19 percent....

The risk-free rate is 2.29 percent, the market rate is 6.72 percent, and the expected return on a stock is 9.19 percent. What is the beta of the stock?

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Answer #1

Cost of equity Rf+ beta x market premium 9.19%0.0229 beta x 4.43% 1.56 Beta (9.19%-0.0229)/0.0443

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