Question
The required rate of return on a market portfolio is 15%, and the market provides a risk-free rate of 7%. Assume you are considering a
The required rate of return on a market portfolio is 15%, and the market provides a risk-free rate of 7%. Assume you are considering a somewhat risky stock investment in this market where = 1.3. What does the Capital Asset Pricing Model say should be the required rate of return for this investment?
| Answer Choices:
12.6% | ||
| 17.4% | ||
| 15.0% | ||
| 7% |
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Get Rich With Dividends
Authors: Marc Lichtenfeld
3rd Edition
1119985552, 978-1119985556
