Question
You are looking at investing in XYZ Company. Risk free rate is 2%, rm 10%, Beta is 1.2. What is the required return using CAPM?
You are looking at investing in XYZ Company. Risk free rate is 2%, rm 10%, Beta is 1.2. What is the required return using CAPM?
So, if XYZ Co. had an expected return of 12%, should you invest?
| a. | 14%, yes | |
| b. | 14%, no | |
| c. | 11.6%, no | |
| d. | 11.6%, yes |
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Entrepreneurial Finance Finance For Small Business
Authors: Philip J. Adelman
1st Edition
0138129835, 9780138129835
