Second Examination – Finance 3321 - Texas Tech University

2. You have just computed the Beta of a stock to be 1.5 and the estimate the expected market return next period is 7.3333%. The estimated cost of equity is 16%. With an estimated long run market risk premium of 8.0%, what risk free rate supports this cost of equity? 2.00%. 3.00%. 4.00%. 5.00%. 6.00%. 3. ................
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