Expected return of investing in company b, Accounting Basics

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Expected return of investing in company b

Problem:

Company A has a beta of 2.77. Company B has a beta of .73. Company C has a beta of .90. The risk free rate is 6% and the market risk premium is 4%.

Required:

Question: What is the expected return of investing in Company B?

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Accounting Basics: Expected return of investing in company b

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Accounting Basics: Expected return of investing in company b

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