A stock has a required return of 11 percent; the risk free rate is 7 percent; and the market risk premium is 4 percent.
What is the stock's beta?
If the market risk premium increased to 6 percent what would happen to the stock's required rate of return? Assume the risk free rate and the beta remained unchanged.© BrainMass Inc. brainmass.com June 4, 2020, 12:08 am ad1c9bdddf
This solution calculates the stock's beta given the required rate of return and risk free rate.