Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Required return
Transcribed Image Text:Assume that Bon Temps has a beta coefficient
of 1.2, that the risk-free rate (the yield on T-
bonds) is 7%, and that the required rate of
return on the market is 12%.
What is Bon Temps' required rate of return?
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