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A stock has an expected return of 15 percent. The market risk premium is 10 percent and the risk-free rate is 4 percent. What is the stock’s beta? (C)

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Question:

A stock has an expected return of 15 percent. The market risk premium is 10 percent and the risk-free rate is 4 percent. What is the stock’s beta? (C)

A.

0.50

B.

0.75

C.

1.1

D.

1.8

Answer» c. 1.1

Note: The above multiple-choice question is for all general and Competitive Exams in India.