Multiple Choice
According to MSN money, the stock of Orange Corporation has a beta of 1.5, but according to Yahoo Finance it is 1.75. The expected rate of return on the market is 12% and the risk free rate is 2%. What is the difference between the required rates of return calculated using each of these betas?
A) 1.50%
B) 1.75%
C) 2.0%
D) 2.5%
Correct Answer:
Verified
Correct Answer:
Verified
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