Circle globes stock has a beta of 109 and a standard


Circle Globes stock has a Beta of 1.09 and a standard deviation of 9.23%. The market risk premium is 8% and the risk-free rate is 3.8%. What is the cost of equity?

A) 8.38%
B) 9.67%
C) 12.52%
D) 13.42%

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Accounting Basics: Circle globes stock has a beta of 109 and a standard
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