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Social ScienceCompute Bowling Avenue Inc.'s required rate of return given a beta of.9, risk free rate of 3.25%, andthe average market return of 9%.5.х () =
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Compute Bowling Avenue Inc.'s required rate of return given a beta of.9, risk free rate of 3.25%, and the average market return of 9%. 5. х ( ) =
Expert Answer
Calculation of required rate of return:
Answer:
The required rate of return is 8.425%
Meaning of required rate of return:
It is the minimum return that an investor would except from the company at a specified lev...
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Required rate of retum (R, ) = R, + B(R-R,)
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Finance
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