Question
You calculated the required rate of return for Microsoft common stock to be 12% based on a risk-free rate of 4% and a market risk
You calculated the required rate of return for Microsoft common stock to be 12% based on a risk-free rate of 4% and a market risk premium of 6%. What is Microsoft's beta coefficient? ___ What is the required rate of return for Microsoft if the market risk premium is 8%?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
6th Edition
0077211332, 9780077211332
