Question
iCorporation has a relative systematic risk level that is 40% greater than the overall market. The expected return on the market is 16%, and the
iCorporation has a relative systematic risk level that is 40% greater than the overall market. The expected return on the market is 16%, and the risk-free rate is 7%. Using the CAPM, the required rate of return for iCorporation is closest to:
A.
19.6%
B.
16.0%
C.
22.4%
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
