Homework Answers
| As per CAPM, | ||||||
| Required return | = | Risk free rate | + | Beta | * | (Market return - Risk Free Rate) |
| = | 6.50% | + | 1.94 | * | (10.5%-6.5%) | |
| = | 6.50% | + | 1.94 | * | 4.00% | |
| = | 14.26% |
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