Question
The beta for Target Corp is .92. Assume that the risk free rate is 2.5%, and the expected return on the market is 10%. What
The beta for Target Corp is .92. Assume that the risk free rate is 2.5%, and the expected return on the market is 10%. What is the cost of common equity of Target Corp based on the Capital Asset Pricing Model?
Group of answer choices
2.5 percent
5.0 percent
8.17 percent
9.4 percent
None of the above
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
6th Edition
003025809X, 978-3540014386
