Question
Ritter Company's stock has a beta of 2.15, the risk-free rate is 3.50%, and the required return on the market portfolio is 11.75%. Using CAPM,
Ritter Company's stock has a beta of 2.15, the risk-free rate is 3.50%, and the required return on the market portfolio is 11.75%. Using CAPM, what is Ritter's required rate of return? Note: Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
