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Calculating beta (show formula) Given the following: Rate of return on Company Z 16% Market rate of return 12% Risk free rate 4% 1. Calculate
Calculating beta (show formula) | |||||
Given the following: | |||||
Rate of return on Company Z | 16% | ||||
Market rate of return | 12% | ||||
Risk free rate | 4% | ||||
1. Calculate Company Z's beta | |||||
2. If Company Z's beta is 2.2, what would be the new required rate of return |
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