Whiney common stock has a beta of 12 the expected rate of, Ask an Expert

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Whiney common stock has a beta of 1.2. The expected rate of return for the market is 9% and the risk free rate is 5%.

a) Compute the fair rate of return based on this information

b) What would be a fair rate if the beta were 0.85?

c) What would be the effect on the fair rate if the expected return for the market improved to 12%?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93043342

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