Consider the single-index model. The alpha of a stock is 2.00%. The return on the market index is 12.00%. The risk-free rate of return is 5.50%. The stock earns a return that exceeds the risk-free rate by 6.50%, and there are no firm-specific events affecting the stock performance. What is the beta of the stock? (Round your answer to 2 decimal places.) Beta
Consider the single-index model. The alpha of a stock is 2.00%. The return on the market index is 12.00%. The risk-free rate of return is 5.50%. The stock earns a return that exceeds the risk-free rate by 6.50%, and there are no firm-specific events affecting the stock performance. What is the beta of the stock? (Round your answer to 2 decimal places.) Beta
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 12P: Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average...
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