Question
A manager believes his firm will earn a 16.80 percent return next year. His firm has a beta of 1.31, the expected return on the
| A manager believes his firm will earn a 16.80 percent return next year. His firm has a beta of 1.31, the expected return on the market is 13.40 percent, and the risk-free rate is 6.40 percent. |
| Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.) |
| A manager believes his firm will earn a 16.80 percent return next year. His firm has a beta of 1.31, the expected return on the market is 13.40 percent, and the risk-free rate is 6.40 percent. |
| Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.) |
| Required return | % |
| Required return | % |
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R In Finance And Economics A Beginners Guide
Authors: Abhay Kumar Singh, David Edmund Allen
1st Edition
9813144467, 978-9813144460
