Investors expect the market rate of return this year to be 14%. A stock with a beta

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Investors expect the market rate of return this year to be 14%. A stock with a beta of .8 has an expected rate of return of 12%. If the market return this year turns out to be 10%, what is your best guess as to the rate of return on the stock?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 30, 2016 09:24 AM

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Investors expect the market rate of return this year to be 14%. A stock with a beta

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Beta tells us how sensitive the stock return is to changes in ...View the full answer

Fundamentals of Corporate Finance

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