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Equity beta

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9. The cost of equity for Ryan Corporation is 8.4%. If the expected return on the market is 10% and the risk-free rate is 5%, then the equity beta is ___.

A. 0.48
B. 0.68
C. 1.25
D. 1.68
E. Impossible to calculate with information given.

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Solution Summary

The solution explains how to calculate the equity beta

$2.19