The topic is estimating risk and reward. Im having trouble figuring out which formula to use. I
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Question:
The topic is estimating risk and reward.
I"m having trouble figuring out which formula to use. I don't know which value goes where in the formula. I am using a financial calculator to try and solve the problem.
Conglomco has a beta of 0.32. If the market return is expected to be 12 percent and the risk-free rate is 5 percent, what is Conglomco's required return? Use the capital asset pricing model (CAPM) to calculate Conglomco's required return.
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