Question
Investors have an expected rate of return of 8% from ordinary shares in Algol, which have a beta of 1.2. The expected returns to the
Investors have an expected rate of return of 8% from ordinary shares in Algol, which have a beta of 1.2. The expected returns to the market are 7%. What will be the expected rate of return from ordinary shares in Rigel, which have a beta of 1.8?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
