A stock with a beta of 1.9 has an expected rate of return of 28%. If...

 

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A stock with a beta of 1.9 has an expected rate of return of 28%. If the market return this year turns out to be 12 percentage points below expectations, what is your best guess as to the rate of return on the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Stock return % A stock with a beta of 1.9 has an expected rate of return of 28%. If the market return this year turns out to be 12 percentage points below expectations, what is your best guess as to the rate of return on the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Stock return %

Answer rating: 100% (QA)

Beta of 19 means risk of stock is 19 times to risk of Market If mar... View the full answer