The following information is provided:   The risk-free rate is 2% The expected market returns are 11%   If the beta of an asset changes from 0.8 to 1.5, what is the additional return that  you require on this asset (in %, please round on 2 decimals

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The following information is provided:

 

  • The risk-free rate is 2%
  • The expected market returns are 11%

 

If the beta of an asset changes from 0.8 to 1.5, what is the additional return that  you require on this asset (in %, please round on 2 decimals)?

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