Question: What is the stock's beta? Why does the stock pay a lower risk premium than the market? A stock costs $30. It rises to $40

What is the stock's beta? Why does the stock pay a

What is the stock's beta? Why does the stock pay a lower risk premium than the market?

A stock costs $30. It rises to $40 with probability 0.62 and falls to $20 with probability 0.38. The risk free interest rate is 2%. The market risk premium is 8%

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