Question
Question 16: FRICO Companys stock had a required return of 20% last year, when the risk-free rate was 2% and the market risk premium was
Question 16: FRICO Companys stock had a required return of 20% last year, when the risk-free rate was 2% and the market risk premium was 6%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return?
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Analysis Of Financial Data
Authors: Gary Koop
1st Edition
0470013214, 978-0470013212
