What would the market price of the security be if its beta


The market price of a stock is £x. Its expected rate of return is y%. Assume the stock is expected to pay a constant dividend in perpetuity. The risk-free rate is 1.5%, and the market risk premium is 7%. What would the market price of the security be if its beta doubles, assuming all other variables remain unchanged (using the CAPM model)?

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Financial Management: What would the market price of the security be if its beta
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