Question
TopFlight Corp has a beta value of 2.0. If the risk free rate is 3.5% and the Expected Market Return is 12.00%, what is the
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TopFlight Corp has a beta value of 2.0. If the risk free rate is 3.5% and the Expected Market Return is 12.00%, what is the Expected/Required return on TopFlights stock? Using the Capital Asset Pricing Model, calculate the expected / required rate of return. (Enter your answer as a percentage, not in decimal form. E.g. 15% should be entered as 15.00 and not as 0.15)
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Premier Corp has a beta value of 1.0. If the risk free rate is 2.75% and the Expected Market Return is 12.25%, what is the Expected/Required return on Premiers stock? Using the Capital Asset Pricing Model, calculate the expected / required rate of return. (Enter your answer as a percentage, not in decimal form. E.g. 15% should be entered as 15.00 and not as 0.15)
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