Assume that Bon Temps has a beta coefficient of 1.2, that the risk-free rate is 3%, and that the required rate of return on the market is 8%. What is Bon Temps' required rate of return?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 15MC: Assume that Temp Force has a beta coefficient of 1.2, that the risk-free rate (the yield on T-bonds)...
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Assume that Bon Temps has a beta coefficient of 1.2, that the risk-free rate is 3%, and that the required rate of return on the market is 8%. What is Bon Temps' required rate of return?

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