Question
The Capital Asset Pricing Model (CAPM) establishes a relationship between a required rate of return and a firms beta. If Facebooks Beta is 1.33, the
The Capital Asset Pricing Model (CAPM) establishes a relationship between a required rate of return and a firms beta. If Facebooks Beta is 1.33, the return on the general stock market is estimated to be 7.5% and the risk free rate is 3.0%, determine the required rate of return for Facebook. A. 5.99% B. 12.98% C. 18.96% D. 8.99%
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
