Question
The risk-free rate of interest is 4% and the market risk premium is 8%. FC Corporation has a beta of 1.8, and last year generated
The risk-free rate of interest is 4% and the market risk premium is 8%. FC Corporation has a beta of 1.8, and last year generated a return of 15% with a standard deviation of returns of 21%. The required return on FC Corporation stock is
A. 19.6%.
B. 16.4%.
C. 23.5%.
D. 18.4%.
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The Legal Environment Today Summarized Case Edition
Authors: Roger LeRoy Miller
8th Edition
130526276X, 978-1305279407, 1305279409, 978-1305704930, 1305704932, 978-1305262768
