Question
Beta and required rate of return A stock has a required return of 16%; the risk-free rate is 2.5%; and the market risk premium is
Beta and required rate of return
A stock has a required return of 16%; the risk-free rate is 2.5%; and the market risk premium is 4%.
- What is the stock's beta? Round your answer to two decimal places.
New stock's required rate of return will be %. Round your answer to two decimal places.
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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
9th International Edition
1259254801, 9781259254802
