AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 26 Topic 3 Discussion

AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 26 Topic 3 Discussion

CWM_LEVEL_2 Exam Topic 3 Question 26 Discussion:
Question #: 26
Topic #: 3

Section B (2 Mark)

Consider the single-factor APT. Stocks A and B have expected returns of 15% and 18%, respectively. The risk-free rate of return is 6%. Stock B has a beta of 1.0. If arbitrage opportunities are ruled out, stock A has a beta of __________.


A.

0.67


B.

1


C.

1.3


D.

none of the above


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