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Assume that the risk-free rate is 6% and the expected return on the market is 10%. What is the required rate of return on a stock with a beta of 1.6? Round the answer to two decimal places.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 2P: APT An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free...

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Solve this question financial accounting

Assume that the risk-free rate is 6% and the
expected return on the market is 10%.
What is the required rate of return on a
stock with a beta of 1.6? Round the answer
to two decimal places.

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