Fisher Corp has a beta value of 0.5. If the risk free rate is 2.5% and the Market Risk Premium is 11.0%, what is the Expected/Required return on Fisher Corp's stock? Using the Capital Asset Pricing Model, calculate the expected / required rate of return. (Enter your answer as a percentage, not in decimal form. E.g. 15% should be entered as 15.00 and not as 0.15.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 7P
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Fisher Corp has a beta value of 0.5. If the risk
free rate is 2.5% and the Market Risk Premium
is 11.0%, what is the Expected/Required return
on Fisher Corp's stock? Using the Capital Asset
Pricing Model, calculate the expected /
required rate of return. (Enter your answer as a
percentage, not in decimal form. E.g. 15%
should be entered as 15.00 and not as 0.15.)
Transcribed Image Text:Fisher Corp has a beta value of 0.5. If the risk free rate is 2.5% and the Market Risk Premium is 11.0%, what is the Expected/Required return on Fisher Corp's stock? Using the Capital Asset Pricing Model, calculate the expected / required rate of return. (Enter your answer as a percentage, not in decimal form. E.g. 15% should be entered as 15.00 and not as 0.15.)
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