Question
Suppose that during the next year the interest rate on the U.S. Treasury bills is expected to be 1% and the rate of return on
Suppose that during the next year the interest rate on the U.S. Treasury bills is expected to be 1% and the rate of return on S&P 500 is expected to be 12%. If ABC stocks beta is 1.40, what is the required rate of return on ABC stock next year?
| 13.4% | ||
| 16.4% | ||
| 17.8% | ||
| 18.2% |
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Case Studies In Finance
Authors: Robert F. Bruner
4th Edition
0072338628, 978-0072338621
