13 The beta coefficient for Stock C is b-0.4, whereas that for Stock D is bo lat is the value of Rosendale's stock at present nd D's beta is negative, indicatingt um stocks fall. There are is be-0.4, whereas that for Stock D is bp- -03. Stock ng that its rate of return rises whenever returns on most other very few negative beta stocks, although collection agency stocks are sometimes cited as an example.) a. If the risk-free rate is 4% and the expected rate of return on an avera are the required rates of return on Stocks C and D For Stock C, suppose the curr 51.00, and the stock's expected constant growth rate is 4%. Is the stock in equilibrium Explain, and describe what will happen if the stock is not in equilibrium. ge stock is13%, what b. t price, Po is $30; the next expected dividend, D, is