(66) Required Rate of Return Suppose rRF = 5%, rM = 10%, and rA = 12%. a....

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(6–6)

Required Rate of Return Suppose rRF = 5%, rM = 10%, and rA = 12%.

a. Calculate Stock A’s beta.

b. If Stock A’s beta were 2.0, then what would be A’s new required rate of return?

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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