Determining required rate of return from beta, Finance Basics

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Determining required rate of return from beta

Blue Stick's common stock has a beta (β) of 0.95. The expected return for the market (rM) is 7 percent and the risk-free rate (rRF) is 4 percent.

(a) What is the required rate of return based on this information?

(b) What would be the required rate of return if the beta were 1.25?

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Finance Basics: Determining required rate of return from beta

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Finance Basics: Determining required rate of return from beta

Reference No:- TGS049769

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Determining required rate of return from beta

Reference No:- TGS049769

Recent Questions Asked Finance Basics

Q : Determining the option exercise value

Q : Performs place function and explain why to pick organization

Q : Government-sponsored insurance in financial system

Q : Calculate the expected real interest rate

Q : Determining required rate of return from beta

Q : Corporate stock book value and market value

Q : Analyze ways property rights encourage economic development

Q : Determining the beta of portfolio

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