Question
Is this correct? Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here (betas provided), given the risk free
Is this correct?
Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here (betas provided), given the risk free rate is 5 percent, and the expected return for the market is 17 percent.
Stock A Beta:0.75 Answer: 17.8%
Stock B Beta: 0.90 Answer: 20.3%
Stock C Beta: 1.40Answer: 28.8%
Note: format is xx.x%
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Fundamentals Of Financial Management Concise
Authors: Eugene F. Brigham, Joel F. Houston
11th Edition
0357517717, 9780357517710
