Calculate the required rate of retum for Climax Inc., assuming that (1) investors expect a 3.0% rate of inflation in the future, (2) the real risk-free rate is 2.0%,(3) the market risk premium is 4.5%, and (4) the firm has a beta of 1.20. 10.BO3s 11.40% 9.405 1100% 10.40% Which of the following statements is correct? Capital market transactions involve only the purchase and sale of equity securities, in, common stocks. A security whose value is derived from the price of some other "underiving" asset is called a liquid security. Money marhets are markets for long term debt and common stocks. Money market mutual funds wsually invest most of their moncy in a well-diversified portfolio of licuid common stocks. As they are wenerally defined, capital market transactions involve securities with maturifes of more than one year