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    Beta Computation

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    Suppose krf (supposed to read K sub RF) = 8% kM (k sub M) = 11% and
    kB(k sub B) = 14%

    A) Calculate stock B's beta

    B) If Stock B's beta were 1.5, what would be B's new required rate of return?

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    https://brainmass.com/business/finance/beta-computation-117381

    Solution Preview

    Suppose krf (supposed to read K sub RF) = 8% kM (k sub M) = 11% and
    kB(k sub B) = 14%

    A) Calculate stock B's ...

    Solution Summary

    This solution is comprised of a detailed calculation to compute a stock's beta.

    $2.49

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