Given the Following Information, Determine Which Beta Coefficient for Stock

question 60

Multiple Choice

Given the following information, determine which beta coefficient for Stock A is consistent with equilibrium: rA = 11.3%; rRF = 5%; rM = 10%

• A) 0.86
• B) 1.26
• C) 1.10
• D) 0.80
• E) 1.35

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