Question
Problem 8-11 CAPM and required return Calculate the required rate of return for Manning Enterprises assuming that investors expect a 4.8% rate of inflation in
| Problem 8-11 CAPM and required return Calculate the required rate of return for Manning Enterprises assuming that investors expect a 4.8% rate of inflation in the future. The real risk-free rate is 3%, and the market risk premium is 4%. Manning has a beta of 2.4, and its realized rate of return has averaged 8.5% over the last 5 years. Round your answer to two decimal places. |
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
