A stock has an expected return of 13.4 percent, the risk-free rate is 9 percent, and the market risk premium is 10 percent. What must the beta of this stock be?

0.44

Explanation:

From the question, we are informed that a stock has an expected return of 13.4 percent, the risk-free rate is 9 percent, and the market risk premium is 10 percent.

The beta of this stock be calculated as:

= (13.4% - 9%) / 10%

= 4.4% / 10%

= 0.044 / 0.10

= 0.44

Therefore, the beta of the stock is 0.44

answer: 11/12

step-by-step explanation: 4 1/4 and 3 1/3 is equivalent to 4 3/12 and 3 4/12. 4 3/12 - 3 4/12 =11/12