The Risk-Free Rate Is 5%, and the Expected Return on the Market

question 6

Multiple Choice

The risk-free rate is 5%, and the expected return on the market is 13%. A publicly-traded bond promises a rate of return of 9%; the expected return on this bond is 8%. What is the
Bond's implied beta?

• A)2.667
• B)0.375
• C)3.000
• D)0.500

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