(CAPM) The risk free rate of return is 3% and the stock's beta coefficient is 1.2....
(CAPM) The risk free rate of return is 3% and the stock's beta coefficient is 1.2. If the market risk premium is 8.2%.,what is the required return of stock?
Homework Answers
required return=risk free rate+Beta*market risk premium
=3+(1.2*8.2)
which is equal to
=12.84%
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