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the beta value,firm's systematic risk;required return rate

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1. The stock of Eastman Kodak has an estimated beta of 1.6. How would you interpret this beta value? How would you evaluate the firm's systematic risk.

2. The stock of Apple, Inc, has an estimated beta of 1.5. The current risk free rate is 5% and the market return is 7.4%. What is the required rate of return on he stock?

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This post show how to calculate the beta value, the firm's systematic risk and required rate of return on stock.

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1. A beta value of greater than 1.0 means that the stock has a higher systematic risk as compared to the market portfolio. If the ...

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