A stock has an expected return of 10%. What is its beta? Assume the risk-free ra

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Question

A stock has an expected return of 10%. What is its beta? Assume the risk-free rate is 7% and the expected rate of return on the market is 17%. (Negative value should be indicated by a minus sign.Round your answer to 2 decimal places.)

*PLEASE EXPLAIN*

Explanation / Answer

r = rf +beta*(rm-rf)

10% = 7%+ beta*(17%-7%)

beta = 0.30

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A stock has an expected return of 10%. What is its beta? Assume the risk-free ra

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Explanation / Answer

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