Question

If the risk-free rate is 4.8 percent and the risk premium is 6.8 percent, what is the required return? (Round your answer to 1 decimal place.)

Required Return: ___.__%

Expert Answer

Want to see the step-by-step answer?

See Answer

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Answer
*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Related Finance Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: Which of the following are suppliers of loanable funds?     households     government units ...

A: First question:The suppliers of loanable finds include households, government units and foreign inve...

Q: Consider the characteristics of the following three stocks   Expected Return     Standard D...

A: Correlation between two stocks shows the level of degree at which one stock moves against the other ...

Q: Washing machine cost $600.  You can buy on credit for 12 monthly payments of $52.74 each total cost ...

A: Answer:No, it was not considered as a best trade-off because, if you wait for one year the price of ...

Q: D. 7.69 percent E 8.26 percent 16. An increase in which of the following would increase the price of...

A: A call option is direct proportional to the stock volatility in the market. if the volatility increa...

Q: ABC requires an investment of $50,000 and borrows $20,000 at 6%. If the return on equity is 15%, wha...

A: Total capital required, C = $ 50,000Debt = D = 20,000Hence, equity = E = C - D = 50,000 - 20,000 = 3...

Q: The Price-Earning ratio (P/E) of stock  A, B, C are 5, 3, 7 respectively. Which one you should buy?

A: A Price-earnings ratio is the relationship between firm's stock price and earnings per share. The hi...

Q: "Assume you graduate with $31,300 in student loans with an interest rate of 5.25% compounded annuall...

A: The loan amount consists present value of all future payments.It is given that,Loan amount is $31,30...

Q: A mining company in South Africa has discovered a new gold vein in a mountain 150 kilometers north o...

A: 1) To set up a new a mine in a mountain which is 150 kms north of Johannesburg, the company would sp...

Q: Tony Ring wants to attend Northeast College. He will need $66,000, 4 years from today. Assume Tony's...

A: Future Amount required (fv) = $66,000Interest Rate = 12%Type of Interest Compounded = SemiannuallyNu...