a) Meta has a stock beta of 1.5, and the current inflation rate is 5%. The shares
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a) Meta has a stock beta of 1.5, and the current inflation rate is 5%. The shares are trading at $98.00, and the average return on the stock market is 8%. If the T-bill rate is 3%, what is the expected return on Meta shares?
b) ABC Limited has a stock beta of 1.2, and the average return on the stock market is 8%. If the t-bill rate is 2%, what is the expected return on ABC shares?
Related Book For
Intermediate Financial Management
ISBN: 978-1111530266
11th edition
Authors: Eugene F. Brigham, Phillip R. Daves
Posted Date: