Question
Investors have an expected rate of return of 8% from ordinary shares in ABC Co, which have a beta of 1.2. The expected returns
Investors have an expected rate of return of 8% from ordinary shares in ABC Co, which have a beta of 1.2. The expected returns to the market are 7%. What will be the expected rate of return from ordinary shares in BBC Co, which have a beta of 1.8?
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