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Consider the Following Information on Stocks I and II

Question 56

Multiple Choice

Consider the following information on Stocks I and II: Consider the following information on Stocks I and II: The market risk premium is 8 percent, and the risk-free rate is 3.6 percent. The beta of stock I is _____ and the beta of stock II is _____. A) 2.08; 2.47 B) 2.08; 2.76 C) 3.21; 3.84 D) 4.47; 3.89 E) 4.47; 4.26 The market risk premium is 8 percent, and the risk-free rate is 3.6 percent. The beta of stock I is _____ and the beta of stock II is _____.


A) 2.08; 2.47
B) 2.08; 2.76
C) 3.21; 3.84
D) 4.47; 3.89
E) 4.47; 4.26

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