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The risk-free rate of interest is 3% und the market risk premium is 5%. Howard Corporation has a beta of 2.0, and last year generated
The risk-free rate of interest is 3% und the market risk premium is 5%. Howard Corporation has a beta of 2.0, and last year generated a retum of 8% with a stundurd deviation of return of 27%. The required return on Howard Corporation stock is 139 24 359 An investor currently holds the following portfolio: Amount invested 8,000 shares of Stock A $16,000 Beta = 1.3 15,000 shares of Stock B $48,000 Beta = 1.8 25,000 shares of Stock C $96,000 Beta = 2.2 If the risk-free rate of return is 2% and the market risk premium is 7%, then the required return on the portfolio is 14.91% 15.93% O 21.91% 23.93% Questiona The expected rate of return from an investment is equal to the expected cash flows divided by the initial investment The Moving to
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