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If the market risk premium is 14%, the risk-free rate is 1.6%, and LeonardCo has a...

If the market risk premium is 14%, the risk-free rate is 1.6%, and LeonardCo has a beta of 2.43, what is the required return for LeonardCo? (Enter your response as a percentage with two decimal places, ex: 12.34)

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Answer #1
As per CAPM
required return %= risk-free rate + beta * (Market risk premium)
= 1.6 + 2.43 * (14)
= 35.62%
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