Problem 6-6: Required Rate of Return CAPM Calculate the required rate of return by using CAPM based on the data below. DATA Risk-free rate = 0.04 Market Risk Premium = 0.10 Beta : 1.2 %3D

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach
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Problem 6-6: Required Rate of Return CAPM
Calculate the required rate of return by using CAPM based on the data
below.
DATA
Risk-free rate =
0.04
Market Risk Premium =
0.10
Beta =
1.2
Transcribed Image Text:Problem 6-6: Required Rate of Return CAPM Calculate the required rate of return by using CAPM based on the data below. DATA Risk-free rate = 0.04 Market Risk Premium = 0.10 Beta = 1.2
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