Question
Zeta, Inc. has a beta equal to 2.1 and a required return of 15% based on the CAPM. If the market risk premium is 6.5%,
Zeta, Inc. has a beta equal to 2.1 and a required return of 15% based on the CAPM. If the market risk premium is 6.5%, the risk-free rate of return is
4.25%.
1.35%.
2.25%.
3.50%.
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