AAA Inc.'s stock has a beta of .95, the risk-free rate is 2.15%, and the market risk
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Question:
AAA Inc.'s stock has a beta of .95, the risk-free rate is 2.15%, and the market risk premium is 5.75%. What is AAA's required rate of return? Do not round your intermediate calculations.
a. | 6.28% | |
b. | 7.61% | |
c. | 6.46% | |
d. | 5.95% | |
e. | 9.63% |
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