Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. stock a's stock has a beta of 1.30, and its requir

Stock A's stock has a beta of 1.30, and its required return is 10.50%. Stock...

60.1K

Verified Solution

Question

Finance

Stock A's stock has a beta of 1.30, and its required return is 10.50%. 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.)

Select the correct answer.

a. 8.23%
b. 8.26%
c. 8.29%
d. 8.32%
e. 8.35%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

How should Montag feel about the fact that someone else died instead ofhim? Extra Help?...

Biology
Q

Marshall Corporation is considering leasing a new equipment. The lease lasts for 8 years. The lease...

Finance
Q

Moe and Larry are ice skating at their neighborhood rink. Moe (100 kg) is heading north...

Physics
Q

5.4 Explain the following terms: (a) calibration chain (b) traceability (c) standards laboratory

Electrical Engineering
Q

Suppose Dave is a junior manager of Hollywood Gym at NYC. There are 1000 members to...

Accounting
Q

animal cells are similar Which statement should wants to describe how plant cells and Jasmine...

Biology
Q

If you wanted to install lights to grow plants indoors the type of light would...

Biology
Q

Consider a square surface of side 2a a circular area of radius a is removed...

Physics
Q

Multiply 6x 7 x 2x 1 6x 7 x 2x 1 Type a polynomial

Algebra
Q

13-9 Journalizing a small stock dividend Element Water Sports has 13,000 shares of $1 par...

Accounting
Q

Assume that an asset had a cost of $30,000 and has $25,000 of Accumulated Depreciation...

Accounting
Q

Problem 17-27 Joint Costs (LO 17-4, 17-5) [The following information applies to the...

Accounting