Multiple Choice
Suppose the MiniCD Corporation's ordinary equity has a return of 12%.Assume the risk-free rate is 4%, the expected market return is 9%, and no unsystematic influence affected Mini's return.The
Beta for MiniCD is:
A) 0.89.
B) 1.60.
C) 2.40.
D) 3.00.
E) It is impossible to calculate beta without the inflation rate.
Correct Answer:

Verified
Correct Answer:
Verified
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