Surf and spray inc has a beta equal to 18 and a required
Surf and Spray Inc. has a beta equal to 1.8 and a required return of 15% based on the CAPM. If the market risk premium is 7.5%, the risk-free rate of return is
a. 3.4%.
b. 1.5%.
c. 4.1%.
d. 2.0%.
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