Question

A stock has an expected return of 14.3 percent, the risk-free rate is 3.9 percent, and the market risk premium is 7.8 percent. what must the beta of this stock be? 1.67 1.08 .94 1.21 1.33

Answer 1

Are the numbers your choices? or is there any other info you can send over

Answer 2

Answer:

1.33

Explanation:

Ex. Return = Risk free rate + Market Premium*Beta

14.3 = 3.9 + 7.8*Beta

10.4 = 7.8*Beta

Beta = 1.33