Question
Based on the CAPM, you have found that the required rate of return on Guivo Corp. stock is 15.46%. The stock has a beta of
Based on the CAPM, you have found that the required rate of return on Guivo Corp. stock is 15.46%. The stock has a beta of 1.1. If the market risk premium is 7.7%, what is the implied risk-free rate of return? Submit your answer as a percentage and round to two decimal places (Ex. 0.00%).
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
6th Edition
003025809X, 978-3540014386
