Answered: If the risk-free rate is 0.03, the…

If the risk-free rate is 0.03, the market risk premium is 0.05, and the beta of Tech Nova Inc.'s stock is 1.4, what is the return of TechNova's stock?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 15MC: Assume that Temp Force has a beta coefficient of 1.2, that the risk-free rate (the yield on T-bonds)...

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Question

Financial accounting

If the risk-free rate is 0.03, the market risk
premium is 0.05, and the beta of Tech Nova Inc.'s
stock is 1.4, what is the return of TechNova's stock?

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