Question
The following data has been gathered concerning a particular investment and conditions in the market. Risk-free rate 4.5% Market return 11.0% Beta of investment 1.35
The following data has been gathered concerning a particular investment and conditions in the market.
| Risk-free rate | 4.5% |
| Market return | 11.0% |
| Beta of investment | 1.35 |
According to the Capital Asset Pricing Model, the required return for this investment is
(a) 8.8%.
(b) 12.9%.
(c) 13.3%.
(d) 14.9%.
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Multinational Finance
Authors: Kirt C. Butler
3rd Edition
0324177453, 978-0324177459
