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The common stock of Industrial Technologies has an expected return of 12.4%. The market return is 9.2% and the risk-free return is 3.87%. What is the stock's beta

Sagot :

Answer: hope this helps

The common stock of Industrial Technologies has an expected return of 12.4 percent. The market return is 9.2 percent and the risk-free return is 3.87 percent. What is the stock's beta?

A.) 0.42

B.) 1.60

C.) 1.32

D.) 1.00

E.) 1.42

B.) 1.60

12.4 = 3.87 + β (9.2 - 3.87); β = 1.60

Explanation: