CSB, Inc., has a beta of 1.33. If the expected market return is 0.140 and the risk-free rate is 0.042, what is the appropriate required return of CSB (using the CAPM)?

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 3Q: Security A has an expected return of 7%, a standard deviation of returns of 35%, a correlation...
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What is the appropriate required return of CSB on this financial accounting question?

CSB, Inc., has a beta of 1.33. If the expected
market return is 0.140 and the risk-free rate is
0.042, what is the appropriate required return of
CSB (using the CAPM)?
Transcribed Image Text:CSB, Inc., has a beta of 1.33. If the expected market return is 0.140 and the risk-free rate is 0.042, what is the appropriate required return of CSB (using the CAPM)?
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