Stock b has a beta of 86 and an expected return of 114


The risk-free rate is 3.7 percent and the expected return on the market is 12.3 percent. Stock A has a beta of 1.1 and an expected return of 13.1 percent. Stock B has a beta of .86 and an expected return of 11.4 percent. Are these stocks correctly priced? Why or why not?

Solution Preview :

Prepared by a verified Expert
Corporate Finance: Stock b has a beta of 86 and an expected return of 114
Reference No:- TGS02727202

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)