Question: FINA 3313 - FINAL EXAM - Version 1 Part 2: PROBLEMS - SHOW YOUR WORK, FORMULAS and CALCUALTIONS Corporation is a stock you are interested

FINA 3313 - FINAL EXAM - Version 1 Part 2: PROBLEMS - SHOW YOUR WORK, FORMULAS and CALCUALTIONS Corporation is a stock you are interested in buying. You determine it has an expected return of 17.5%. If the risk-free rate is currently 4.2% and the return of the market is 11.2%, What is the beta of Branson Corporation's stock? What is the market risk premium? Is this stock riskier or safer than the market average? (6 points)

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