A stock is worth 10 today and will pay either 16 with


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A stock is worth $10 today and will pay either $16 with probability 0.4, or $8 with probability 0.6. The risk free rate is 0% and the expected return on the market is 10%. What must be the stock’s beta?

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Financial Management: A stock is worth 10 today and will pay either 16 with
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