Question: Given the following information, determine which beta coefficient for Stock A is consistent with equilibrium: R A = 11.3%; R RF = 5%; R M

Given the following information, determine which beta coefficient for Stock A is consistent with equilibrium:

RA = 11.3%; RRF = 5%; RM = 10%

A.

0.86
B.

1.26
C.

1.10
D.

0.80
E.

1.35

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