Q.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? | Financial Risk Manager Part 1 Quiz - LeetQuiz
Financial Risk Manager Part 1
Explanation:
E(Ri)=Rf+E(Rm−Rf)βi
‘15`% = 3.5% + (4.5%)\beta_i
$`$11.5`\% = (4.5\%)\beta_i⇒βi=2.5556
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Q.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?
