Explanation:
15`% = 3.5% + (4.5%)\beta_i
$`$11.5`\% = (4.5\%)\beta_iQ.3491 Company ABC is expected to return 15% per year to its investors, the market expected return is 8%, and the risk-free rate is 3.5%. What is ABC's stock beta?
A
1.4375
B
1.875
C
2.5556
D
3.3333
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