Question
The beta of Stock A is 0.7 (indicating that its returns rise when returns on most other stocks fall). If the risk-free rate is 4.7
The beta of Stock A is 0.7 (indicating that its returns rise when returns on most other stocks fall). If the risk-free rate is 4.7 percent and the expected rate of return on an average stock is 11 percent, what is the required rate of return on Stock A?
| a. | 0.29% | |
| b. | 12.40% | |
| c. | 4.41% | |
| d. | 3.00% | |
| e. | 9.11% |
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Financial Management Principles And Practice
Authors: Timothy Gallagher
6th Edition
1930789157, 978-1930789159
