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shellbell

  • 3 years ago

The current risk-free 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?

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  1. Tania123
    • 3 years ago
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    re = rf + B(rp) re = 4 + 2(5) re = 14%

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