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The betas of two companies A and B are respectively 1 and 0.7. The minimum required return based on CAPM for the two companies A
The betas of two companies A and B are respectively 1 and 0.7. The minimum required return based on CAPM for the two companies A and B are respectively 14% and 11.3%. The risk-free rate is therefore: 4% 5% 6% 7% None of the above. Question 50 (1 point) The betas of the company A is 1.3. The minimum required return of the company, based on CAPM, is 16%. If the risk-free rate is at 6%, what is the expected market return? 12.24%. 12.90% 13.69%. 12.56%.
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