Answered: CSB Tech, Inc. has a beta of 1.45. If…

CSB Tech, Inc. has a beta of 1.45. If the expected market return is 0.125 and the risk-free rate is 0.038, what is the appropriate required return of CSB Tech (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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Question

General Accounting

CSB Tech, Inc. has a beta of 1.45. If the expected
market return is 0.125 and the risk-free rate is
0.038, what is the appropriate required return of
CSB Tech (using the CAPM)?

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