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BMW Corporation has a beta of 2.0. The risk-free rate of interest is 0.06, and the...

BMW Corporation has a beta of 2.0. The risk-free rate of interest is 0.06, and the return on the stock market overall is expected to be 0.09. What is the required rate of return on BMW stock?

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Answer #1

Required Return (r) Rf+BxRp Here, Risk free rate of return (RF) Beta of the stock (B) Market risk premium (Rp) 3% =9%-6% Requ

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