Question
The current risk-free rate of return, r_(RF) , is 5 percent and the market risk premium, RP_(M) , is 6 percent. If the beta coefficient
The current risk-free rate of return,
r_(RF), is 5 percent and the market risk premium,
RP_(M), is 6 percent. If the beta coefficient associated with a firm's stock is 1.4 , what should be the stock's required rate of return? Round your answer to one decimal place.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
