Stevens Incorporateds stock has a 14 percent return, a beta of 0.85, and the market return is

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Stevens Incorporated’s stock has a 14 percent return, a beta of 0.85, and the market return is 15 percent.

a. What was the risk-free rate in the economy for the year?

b. The stock market of another company had a return of 20 percent. What would you estimate its beta to be?

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Related Book For answer-question

Introduction to Finance Markets, Investments and Financial Management

ISBN: 978-1119398288

16th edition

Authors: Ronald W. Melicher, Edgar A. Norton

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Question Posted: Jun 12, 2019 10:44 AM

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Stevens Incorporateds stock has a 14 percent return, a beta of 0.85, and the market return is

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a The security market line is given by Expected security return riskfree rate market return riskfre...View the full answer

Introduction to Finance Markets, Investments and Financial Management

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