Business, 16.07.2020 18:01, 911wgarcia

A stock has a required return of 9%, the risk-free rate is 4.5%, and the market risk premium is 3%. a. What is the stock’s beta?
b. If the market risk premium increased to 5%, what would happen to the stock’s required rate of return?
Assume that the risk-free rate and the beta remain unchanged.

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A stock has a required return of 9%, the risk-free rate is 4.5%, and the market risk premium is 3%....