Question
Mulherin's stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 2.30%. What is the required rate of return
Mulherin's stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 2.30%. What is the required rate of return on the market? (Hint: First find the market risk premium.)Do not round your intermediate calculations.
a.8.19%
b.7.69%
c.10.58%
d.9.98%
e.12.38%
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
