alleryStart learning →Ke is 16%, Rf 7%, Rm 13%. What beta does CAPM imply?
A2.3
B1.8
C1.5
D1.2
Answer & Solution
Correct answer: C. 1.5
Beta = (16 - 7) / (13 - 7) = 9 / 6 = 1.5.
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