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Suppose the risk free rate (rfr) = 5%, average market return (rm) = 10%, and the required or expected rate of return E(r) = 12%
Suppose the risk free rate (rfr) = 5%, average market return (rm) = 10%, and the required or expected rate of return E(r) = 12% for the TNG Co.
- Calculate the Beta () for TNG.
- If TNGs Beta () = 2.0, what would be TNGs new required or expected rate of return (r)?
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Case Studies In Finance
Authors: Robert F. Bruner
4th Edition
0072338628, 978-0072338621
