SOLUTION: Stock A's stock has a beta of 1.30, and its required return is 15.50%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hi

Algebra ->  Finance -> SOLUTION: Stock A's stock has a beta of 1.30, and its required return is 15.50%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hi      Log On


   



Question 1149508: Stock A's stock has a beta of 1.30, and its required return is 15.50%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.)
a. 11.25%

b. 11.29%

c. 11.37%

d. 11.33%

e. 11.41%

Answer by ikleyn(52788) About Me  (Show Source):
You can put this solution on YOUR website!
.

Let me explain you something.

There is the area of Math problems and there is the area of Finance problems.

There is some intersection of these two areas.

While the problem is in Math, we can help.

Even if the problem is in intersection area, we still can help.

But THIS problem is strictly in the Finance area, highly specialized.

In this area we CAN NOT help at this forum.

So, you simply waste your time, posting this problem and such problems to this forum.

Find another, more appropriate site for your needs.