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Business, 27.02.2020 21:56 taylor6543

A stock has a required return of 11%; the risk-free rate is 7%; and the market risk premium is 4%.

a) What is the stock's beta?

b) If the market risk premium increased to 6%, what would happen to the stock's required rate of return? Assume the risk-free rate and the beta remain unchanged

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Answers: 3

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A stock has a required return of 11%; the risk-free rate is 7%; and the market risk premium is 4%.

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