Multiple Choice
Assume that a security is fairly priced and has an expected rate of return of 0.13. The market expected rate of return is 0.13, and the risk-free rate is 0.04. The beta of the stock is
A) 1.25.
B) 1.7.
C) 1.
D) 0.95.
Correct Answer:
Verified
Correct Answer:
Verified
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