Diddy Corp Stock Has a Beta of 1

question 6

Multiple Choice

Diddy Corp stock has a beta of 1.0, the current risk-free rate is 5%, and the expected return on the market is 15.5%. What is Diddy's cost of equity?

• A) 15.50%
• B) 14.20%
• C) 18.50%
• D) 16.30%

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