Question
Calabassas Golf, Inc. has a beta of 1.9. The risk-free rate of interest is 4%, and the market portfolio has an expected return of 10%.
Calabassas Golf, Inc. has a beta of 1.9. The risk-free rate of interest is 4%, and the market portfolio has an expected return of 10%. What is the cost of equity (Ke) for this company based on the capital asset pricing model?
| a. | 23.0% | |
| b. | 11.4% | |
| c. | 15.4% | |
| d. | 14.0% |
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Fundamentals Of Futures And Options Markets
Authors: John Hull
9th Global Edition
1292422114, 9781292422114
