Find what best guess as to the rate of return on the stock

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Problem 1: A stock with a beta of 0.9 has an expected rate of return of 9%. If the market return this year turns out to be 7 percentage points below expectations, what is your best guess as to the rate of return on the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Reference no: EM132843971

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