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Suppose you have following information: Security Beta Expected return Fires Inc 1.7 16.2% Day Co. 0.5 12.7% What would the risk-free rate have to be
Suppose you have following information:
Security Beta Expected return
Fires Inc 1.7 16.2%
Day Co. 0.5 12.7%
What would the risk-free rate have to be for the securities to be correctly priced?
| 8.66% | |
|
| 12.00% |
|
| 13.12% |
|
| 11.24% |
|
| 14.16% |
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