Given the Following Information,determine Which Beta Coefficient for Stock a Is

question 100

Multiple Choice

Given the following information,determine which beta coefficient for Stock A is consistent with equilibrium: E(k_i) = 8.5%; k_F = 4%; E(k_M) = 12%.

• A) 0.80
• B) 1.26
• C) 0.56
• D) 1.10
• E) 1.00

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