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Compute the required rate of return using the CAPM and the following information: Beta = .85 Expected return on the market = 9% %3D Risk-Free Rate = 1.50% a. 7.50% b. 7.88% c. 9% d. 1.50% e. 7.65%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 2P: APT An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free...

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Question

Compute the required rate of return using the
CAPM and the following information:
Beta = .85
Expected return on the market = 9%
Risk-Free Rate = 1.50%
a. 7.50%
b. 7.88%
C. 9%
d. 1.50%
e. 7.65%

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