Calculate the required rate of return for Lowell Inc., assuming that (1) the risk-free rate is 7% , (2) the expected return on the market portfolio is 15%, (3) the firm has a beta of 1.20, and (4) its realized rate of return has averaged 15.0% over the last 5 years. Hint: You may not need all of the information given.
15.00%
15.80%
16.60%
15.60%
13.00%