Suppose Barges Plc's Equity Has an Expected Return of 12

question 26

Multiple Choice

Suppose Barges plc's equity has an expected return of 12%.Assume that the risk-free rate is 5%, and the market risk premium is 6%.If no unsystematic influence affected Barges' return, the beta for
Barges is ______ .

• A)1.00
• B)1.17
• C)1.20
• D)2.50
• E)It is impossible to calculate with the information given

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Definitions:

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