If Risk free rate (Rf) = 7% market premium (Rm) = 13% Beta = 1.845 What...

Question

Question

If

Risk free rate (Rf) = 7%

market premium (Rm) = 13%

Beta = 1.845

What will be Ke ?

Please explain how you calculated with steps

Answer 1

Answer #1

Ke = Rf + Beta(Rm)

Ke = 0.07 + 1.845(0.13)

Ke = 0.30985 or 30.985%

Answer 2

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