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shellbell
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The current riskfree rate of return, rRF, is 4 percent and the market risk premium, RPM, is 5 percent. If the beta coefficient associated with a firm’s stock is 2.0, what should be the stock’s required rate of return?
 2 years ago
 2 years ago
shellbell Group Title
The current riskfree rate of return, rRF, is 4 percent and the market risk premium, RPM, is 5 percent. If the beta coefficient associated with a firm’s stock is 2.0, what should be the stock’s required rate of return?
 2 years ago
 2 years ago

This Question is Closed

Tania123 Group TitleBest ResponseYou've already chosen the best response.0
re = rf + B(rp) re = 4 + 2(5) re = 14%
 2 years ago
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