Stock A's Stock Has a Beta of 1

question 26

Multiple Choice

Stock A's stock has a beta of 1.30, and its required return is 12.00%.Stock B's beta is 0.80.If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.)

• A) 8.76%
• B) 8.98%
• C) 9.21%
• D) 9.44%
• E) 9.68%

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Definitions:

Social Groups

Social groups consist of two or more people who interact with one another, share similar characteristics, and collectively have a sense of unity and common identity.

Interest Groups

Organizations formed by individuals or businesses to influence public policy, legislation, and government decisions in their favor, typically through lobbying, advocacy, and education.

Friendship Groups

Informal social networks of individuals who share personal bonds and choose to interact based on common interests or affiliations.

Support Groups

Organizations or gatherings designed to provide emotional assistance, advice, and a sense of community among individuals facing similar issues or challenges.