Question: Suppose the Barges Corporation's common stock has an expected return of 12%. Assume that the risk free rate is 5%, and the market risk premium
Suppose the Barges Corporation's common stock has an expected return of 12%. Assume that the risk free rate is 5%, and the market risk premium is 6%. If no unsystematic influence affected Barges return, the beta for Barge is:______ ?
a. 1.00
b. 1.17
c. 1.20
d. 2.50
e. It is impossible to calculate with the information given
Step by Step Solution
3.41 Rating (173 Votes )
There are 3 Steps involved in it
b 117 Computation of the Beta ... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
68-B-F-F-M (2168).docx
120 KBs Word File
