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Author Question: Given the following information, determine which beta coefficient for Stock A is consistent with ... (Read 58 times)

karlynnae

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on: Apr 25, 2021

Question 1

Consider the data on expected returns and betas for a variety of assets in the table below. What is the expected return on shares of Bank of America using the SML?

AssetExpected ReturnBeta
Bank of America​0.9
Risk Free Asset4%0
Market Portfolio10%1

◦ 5.4%
◦ 6.0%
◦ 8.2%
◦ 9.4%
◦ 11.2%

Question 2

Given the following information, determine which beta coefficient for Stock A is consistent with equilibrium: E(ki) = 8.5%; kF = 4%; E(kM) = 12%.
◦ 0.80
◦ 1.26
◦ 0.56
◦ 1.10
◦ 1.00
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by karlynnae on Apr 25, 2021

recede

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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karlynnae

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Reply 2 on: Apr 25, 2021
Excellent

sailorcrescent

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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