Question: Given that r K = 11.1%, r RF = 4.5%, and r M = 9.7%, determine the beta coefficient for Stock K that is consistent

  1. Given that r K = 11.1%, r RF = 4.5%, and r M = 9.7%, determine the beta coefficient for Stock K that is consistent with equilibrium.

    a.

    1.14
    b.

    0.79
    c.

    0.68
    d.

    1.47
    e.

    1.27

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