Re: Chapter 17, Quiz 9b (page 469)

Nabila Audi ( naudi@ins.state.pa.us )
Tue, 25 Aug 1998 12:23:36 -0400

If the debt is risk-free then rf = 10% from part (a).
using the formula r-rf = beta (rm - rf)

..15 - .1 = 1.5 ( rm -.1) to give rm = 13.33 %
which is the answer in the book.

Does this make sense?

At 10:21 AM 8/25/98 -0700, Janette Mosley wrote:
>Does anyone have the solution worked out? The answer is in the back of
>the book, but no one here can figure it out. Thx!
>
>