Question
Ritter Company's stock has a beta of 2.35, the risk-free rate is 3.75%, and the required return on the market portfolio is 11.50%.Using CAPM, what
Ritter Company's stock has a beta of 2.35, the risk-free rate is 3.75%, and the required return on the market portfolio is 11.50%.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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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
