Question: why does b=3.36 and not 1.74?? BETA COEFFICIENT F = 5.85%; M = 8.5%. Given the following information, determine the beta coefficient for Stock L

why does b=3.36 and not 1.74??

BETA COEFFICIENT F = 5.85%; M = 8.5%. Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: 1 - 14.75%; Round your answer to two decimal places. 1.74 X Hide Feedback Incorrect Post Submission Feedback Solution In equilibrium: In = fu = 14.75% L = R + ( RF) 14.75% = 5.85% + (8.5% - 5.85%)b b = 3.36 Solution Correct Response Click here to read the eBook: The Relationship Between Risk and Rates of Return BETA COEFFICIENT Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: L - 14.75%; TRF-5.85%; - 8.5%. Round your answer to two decimal places

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