A company has a beta of 0.57. If the market return is expected to be 12.7 percent and the risk-free rate is 5.35 percent, what is the company's required return?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 4P: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market...
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Financial Accounting Question please need help

A company has a beta of 0.57. If the market return
is expected to be 12.7 percent and the risk-free
rate is 5.35 percent, what is the company's
required return?
Transcribed Image Text:A company has a beta of 0.57. If the market return is expected to be 12.7 percent and the risk-free rate is 5.35 percent, what is the company's required return?
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