Question
The stock of Target Corporation has a beta of 0.86. The market risk premium is 5.08 percent and the risk-free rate is 3.32 percent. What
The stock of Target Corporation has a beta of 0.86. The market risk premium is 5.08 percent and the risk-free rate is 3.32 percent. What is the required rate of return on this stock? Use the CAPM Equation
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
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Public Finance and Public Policy
Authors: Jonathan Gruber
4th edition
1429278455, 978-1429278454
