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Aardvark Companys beta coefficient is 1.2. The current rates for U.S. treasury bonds and expected corporate returns are 7% and 12%, respectively. What is Aardvarks
Aardvark Companys beta coefficient is 1.2. The current rates for U.S. treasury bonds and expected corporate returns are 7% and 12%, respectively. What is Aardvarks approximate expected rate of return using the capital asset pricing model (CAPM)?
|
| 8.4% | |
|
| 10.6% | |
|
| 13.0% | |
|
| 14.4% |
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