Question
What is the CAPM required return of a stock with a beta of 0.7 if the risk-free rate is 1.0% and the expected marketreturnis 5.1%?
What is the CAPM required return of a stock with a beta of 0.7 if the risk-free rate is 1.0% and the expected marketreturnis 5.1%? Answer in percent, rounded to two decimal places. (e.g., 4.32% = 4.32). [Hint: CAPM required return = Risk-free rate + beta x [expected market return - risk-free rate). Mind your order of operations!]
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
