Question
For AT&T Inc. 2018. Apply the Capital Asset Pricing Model (CAPM) Security Market Line to estimate the required return on THE COMPANY stock. Expected Rate
For AT&T Inc. 2018. Apply the Capital Asset Pricing Model (CAPM) Security Market Line to estimate the required return on THE COMPANY stock. Expected Rate of Return = Risk-Free Rate + Beta(Market Return Risk Free Rate) Use 7.5% for an average expected market rate of return Use 3% as an average risk-free rate (10 year composite rate of T-bill) Find the beta of your companys stock with other financial data on Yahoo Finance or MarketWatch. Calculate the required return on the stock using the Capital Asset Pricing Model (CAPM) Security Market Line. Please show your work in a one line calculation as shown in the formula above.
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