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problem: Beta and required rate of return X stock has a required return of eleven percent; the risk free rate is seven percent; & the market risk premium is 4%.

[A] find out the stock’s beta?

[B] If the market risk premium rises to 6%, what would happen to the stock markets rate of return?

Suppose the risk-free rate & the beta remain unchanged.

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  • Category:- Basic Finance
  • Reference No.:- M920685

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