The risk-free rate is 4.2%, and the expected return on the market is 10%. A publicly-traded bond
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Question:
The risk-free rate is 4.2%, and the expected return on the market is 10%. A publicly-traded bond promises to return 8%. The expected return on the bond investment is 5.5%. What is the bond's implied beta?
(A) 0.45
(B) 0.22
(C) 0.73
(D) 1.38
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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