What will the market price of the security

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The market price of a security is $55. Its expected rate of return is 9.26%. The risk-free rate is 4.26%, and the market risk premium is 5.26%. Assume the stock is expected to pay a constant dividend in perpetuity.

Required: What will the market price of the security be if its beta doubles (and all other variables remain unchanged)?

 

Reference no: EM13257536

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