# Beta Computation

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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#### 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