A manager believes his firm will earn a 16.30 percent return next year. His firm has a beta of 1.71, the expected return on the
| A manager believes his firm will earn a 16.30 percent return next year. His firm has a beta of 1.71, the expected return on the market is 13.60 percent, and the risk-free rate is 6.60 percent. |
| Compute the return the firm should earn given its level of risk. |
| Required return? | % |
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Authors: Betty Simkins, Russell Simkins
1st Edition
1118017129, 978-1118017128
