The stock in Bowie Enterprises has a beta of .92. The expected return on the market...
The stock in Bowie Enterprises has a beta of .92. The expected return on the market is 12.20 percent and the risk-free rate is 3.15 percent. What is the required return on the company's stock?
Homework Answers
Required return=risk free rate+beta*(market rate-risk free rate)
=3.15+0.92*(12.2-3.15)
which is equal to
=11.476%
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