Question
Stock A's stock has a beta of 0.70, and its required return is 10%. Stock B's beta is 1.45. If the risk-free rate is 3.00%,
Stock A's stock has a beta of 0.70, and its required return is 10%. Stock B's beta is 1.45. If the risk-free rate is 3.00%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.) Do not round your intermediate calculations.
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
