Analysts state that the required return from Plummet Soft Drinks stock
Analysts state that the required return from Plummet Soft Drinks stock is 25%, and the returns from Treasury bills and the market portfolio are 4% and 20%, respectively. What is Plummet’s beta?
A) 0.79
B) 1.00
C) 0.05
D) 1.31
E) 1.13
ANSWER
D
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