Question: A stock has expected return equal to 11% and beta equal to 0.75. The expected return on the market is 12.667%. What is closest to

A stock has expected return equal to 11% and beta equal to 0.75. The expected return on the market is 12.667%. What is closest to the risk free rate?

If it rains a stock will return 5%, and 20% if it does not rain. The probability of rain is 25%. The market risk premium is 23% and the risk-free rate is 5%. What is closest to the stock's beta?

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