Given the following information, determine which beta coefficient for

Given the following information, determine which beta coefficient for Stock A is consistent with equilibrium: E(ki) = 8.5%; kF = 4%; E(kM) = 12%.

A) 0.80
B) 1.26
C) 0.56
D) 1.10
E) 1.00

 

 

ANSWER

C

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