Suppose r RF = 8%, r M = 11%, and r B = 14%. a. Calculate stock

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Suppose rRF = 8%, rM = 11%, and rB = 14%.

a. Calculate stock B’s beta,

b. If stock B’s beta were 1.5, what would be B’s new required rate of return?

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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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