Question
Stock A has a beta of 1.25, and its required return is 12.25%. Stock B's beta is also 1.25. If the risk-free rate is 3.25%,
Stock A has a beta of 1.25, and its required return is 12.25%. Stock B's beta is also 1.25. If the risk-free rate is 3.25%, the required rate of return on B's stock is _____. (Compute the market risk premium first)
| 7.20% | ||
| 7.50% | ||
| 9.00% | ||
| 12.25% | ||
| 15.50% |
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
18th Edition
126409762X, 9781264097623
