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Problem:

The common stock of Flavorful Teas has an expected return of 15.44 percent. The return on the market is 12 percent and the risk-free rate of return is 3.4 percent.

Required:

Question: What is the beta of this stock?

  • 0.70
  • 1.40
  • 3.50
  • 0.71
  • 1.28

Note: Explain all calculation and formulas.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91147964

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