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Assume the risk-free rate of interest is 2% and the market risk premium is 6%. RedFox Inc has a beta of 2. What would be

Assume the risk-free rate of interest is 2% and the market risk premium is 6%. RedFox Inc has a beta of 2. What would be the required rate of return on the stock?

Reminder - The CAPM formula is: r = rRF + (rM - rRF)
  • A.

    8%

  • B.

    14%

  • C.

    10%

  • D.

    7%

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