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| 129:16 ack to Assignment Score: 14 Attempts: 11. Problem 8-09 eBook Problem 8-09 Stock A has a risk premium of 4.9 percent.
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Answer #1

Risk premium of Stock = Beta [ Rm - Rf ]

4.9% = Beta [ 8% - 2.2% ]

= Beta [ 5.8% ]

Beta = 4.9% / 5.8%

= 0.8448

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