Answer: 1.167
Explanation:
From the question, we are informed to calculate the beta coefficient for a stock with a return of 10%, risk free rate of 3% and the market return of 9%. This would go thus:
Beta = (stock return - riskfree rate) / (market return - riskfree rate)
= (10% - 3%) / (9% - 3%)
= 7% / 6%
= 0.07 / 0.06
=1.167
