A stock has a required return of 9%, the risk-free rate is 4.5%, and the market risk
Question:
A stock has a required return of 9%, the risk-free rate is 4.5%, and the market risk premium is 3%.
a. What is the stock’s beta?
b. If the market risk premium increased to 5%, what would happen to the stock’s required rate of return? Assume that the risk-free rate and the beta remain unchanged.
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Related Book For 
Fundamentals of Financial Management
ISBN: 978-1305635937
Concise 9th Edition
Authors: Eugene F. Brigham
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