Question
A manager believes his firm will earn a 14 percent return next year. His firm has a beta of 1.5, the expected return on the
A manager believes his firm will earn a 14 percent return next year. His firm has a beta of 1.5, the expected return on the market is 12 percent, and the risk-free rate is 4 percent.
Compute the return the firm should earn given its level of risk.
Required return %??
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Practical Financial Management
Authors: William R. Lasher
8th edition
1305637542, 978-1305887237, 1305887239, 978-1305637542
