Suppose Binder corporatio's common stock has a return of 17.61 percent. The risk-free rate is 3.68 percent, the market return is 12.4 percent and there is no unsystematic risk affecting Binder's return. Given the one-factor arbitrage pricing model, what is the factor beta

1.597

Explanation:

The computation of the factor beta using the one-factor arbitrage pricing model is shown below:

As we know that

= (Expected rate of return - risk-free rate of return) ÷ (market rate of return-risk-free rate of return)

= (17.61% - 3.68%) ÷ (12.4% - 3.68%)

= 1.597

We simply applied the above formula to determine the factor beta and the same is to be considered

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself