You have been given the following information: The required return of the market is 14.5% The risk free rate is 3.5% The beta for your investment is .95 Required: Calculate the required rate of return for your investment, with the above data Assume that that the beta for the investment is 1.95 calculate the new required rate of return for your investment.
You have been given the following information: The required return of the market is 14.5% The risk free rate is 3.5% The beta for your investment is .95 Required: Calculate the required rate of return for your investment, with the above data Assume that that the beta for the investment is 1.95 calculate the new required rate of return for your investment.
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 6P
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Question
You have been given the following information:
-
- The required return of the market is 14.5%
- The risk free rate is 3.5%
- The beta for your investment is .95
Required:
- Calculate the required
rate of return for your investment, with the above data - Assume that that the beta for the investment is 1.95 calculate the new required rate of return for your investment.
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