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11 April, 21:17

A stock has an expected return of 10.2 percent, the risk-free rate is 3.9 percent, and the market risk premium is 7.2 percent. What must the beta of this stock be?

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  1. 12 April, 00:24
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    Answer: The beta of the stock is 1.91

    Explanation:

    10.2 = 3.9 + (7.2 - 3.9) (X)

    = 6.3 = 3.3x

    =. X = 1.91
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