A stock has a required return of 11%; the risk-free rate is 7%; and the market risk premium is 4%.
a) What is the stock's beta?
b) If the market risk premium increased to 6%, what would happen to the stock's required rate of return? Assume the risk-free rate and the beta remain unchanged
+4
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A stock has a required return of 11%; the risk-free rate is 7%; and the market risk premium is 4%. a) What is the stock's beta? b) If the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » A stock has a required return of 11%; the risk-free rate is 7%; and the market risk premium is 4%. a) What is the stock's beta? b) If the market risk premium increased to 6%, what would happen to the stock's required rate of return?