Question
Suppose that during the next year the interest rate on the U.S. Treasury bills is expected to be 1% and S&P 500s risk premium over
Suppose that during the next year the interest rate on the U.S. Treasury bills is expected to be 1% and S&P 500s risk premium over the risk-free rate is expected to be 8%. If XYZ stocks beta is 0.60, what is required rate of return on XYZ stock next year?
| 5.2% | ||
| 5.4% | ||
| 5.8% | ||
| 8.6% |
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
18th Edition
126409762X, 9781264097623
