Question
If the expected return from the market is 12%, the risk-free rate is 4%, and the beta of Loschert Corp. is 0.9, what is the
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If the expected return from the market is 12%, the risk-free rate is 4%, and the beta of Loschert Corp. is 0.9, what is the required rate of return on Loschert stock?
a. 3.60%.
b. 7.20%.
c. 12.00%.
d. 11.20%,
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
