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REQUIRED RATE OF RETURN (Percent) 20.0 16.0 12.0 8.0 4.0 0 CAPM Elements Risk-free rate (TRF) Market risk premium (RPM) Happy Corp. stock's beta Required

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REQUIRED RATE OF RETURN (Percent) 20.0 16.0 12.0 8.0 4.0 0 CAPM Elements Risk-free rate (TRF) Market risk premium (RPM) Happy Corp. stock's beta Required rate of return on Happy Corp. stock 0.5 1.0 RISK (Beta) Return on HC's Stock 1.5 2.0 Value : (?)

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