Assume that the risk-free rate is 2.5% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 0.9? Round your answer to two decimal places.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 15PROB
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9. Problem 8.03 (Required Rate of Return)
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Assume that the risk-free rate is 2.5% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 0.9? Round your answer to two decimal places.
%
Transcribed Image Text:9. Problem 8.03 (Required Rate of Return) A-Z dOffice eBook Assume that the risk-free rate is 2.5% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 0.9? Round your answer to two decimal places. %
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