Question

ABC stock has a required return of 20%. The expected market return is 15% and the...

ABC stock has a required return of 20%. The expected market return is 15% and the risk-free rate is 5%. Calculate the beta of ABC stock. (Make sure to show your work. No Work, No Point)
a. 1
b. 1.5
c. 2
d. 2.5
e. 3

Homework Answers

Answer #1

Ans is b. 1.5

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