A company has a beta of 0.25. If the market return is expected to be 8 percent and the risk-free rate is 2 percent, what is the company's required return? Multiple Choice __ 1.50 percent ___ 3.50 percent ___ 4.00 percent ___ 13.50 percen
A company has a beta of 0.25. If the market return is expected to be 8 percent and the risk-free rate is 2 percent, what is the company's required return? Multiple Choice __ 1.50 percent ___ 3.50 percent ___ 4.00 percent ___ 13.50 percen
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A company has a beta of 0.25. If the market return is expected to be 8 percent and the risk-free rate is 2 percent, what is the company's required return?
Multiple Choice
__ 1.50 percent
___ 3.50 percent
___ 4.00 percent
___ 13.50 percent
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