Exam III Review II Questions
September 21, 2017
Exam III Review II Questions in $6 Only (Instant Download)
Use the following information for Questions 1 and 2:
A stock has a required return on 11 percent. The risk-free is 7 percent, and the market risk premium is 4 percent.
- What is the stock’s beta?
- 1.2
- 1.1
- 1.0
- 0.9
2. If the market risk premium increases to 6 percent, what will happen to the stock’s required rate of return?
- 6.00%
- 7.00%
- 11.00%
- 13.00%
