Question
A stock has an expected return of 13 percent and a beta of 1.16, and the expected return on the market is 12 percent. Required:
A stock has an expected return of 13 percent and a beta of 1.16, and the expected return on the market is 12 percent.
| Required: |
| What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| Risk-free rate | % |
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Capital Budgeting
Authors: Pamela P. Peterson
1st Edition
0471218332, 9780471218333
