Suppose the Barges Corporation's Common Stock Has an Expected Return

question 4

Multiple Choice

Suppose the Barges Corporation's common stock 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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