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The risk free rate of return is 5%. Eastwood Inc. stock has a beta of.8, and the risk premium of owning this individual stock is

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The risk free rate of return is 5%. Eastwood Inc. stock has a beta of.8, and the risk premium of owning this individual stock is 10%. What is Eastwood's required rate of return. TO RECEIVE CREDIT FOR THIS QUESTION YOU MUST SHOW BOTH YOUR ANSWER, ROUNDED TO TWO DECIMAL PLACES, AND THE CALCULATIONS YOU USED TO ARRIVE AT THAT ANSWER. You read in The Wall Street Journal that 6 month Treasury bills are currently yielding 5 percent. Your brother-in-law, a broker at Below Deck Securities, has given you the following estimates of current interest rate premiums: On the basis of this data, the real risk-free rate of return is? Inflation premium = 3%. Liquidity premium = .5%. Maturity risk premium = 1%. Default risk premium = 1%. TO RECEIVE CREDIT FOR THIS QUESTION YOU MUST SHOW BOTH YOUR ANSWER, ROUNDED TO TWO DECIMAL PLACES, AND THE CALCULATIONS YOU USED TO ARRIVE AT THAT

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