RedBridge Technologies 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 RedBridge Technologies (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
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 2P: APT An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free...
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RedBridge Technologies 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 RedBridge Technologies (using the
CAPM)?
Transcribed Image Text:RedBridge Technologies 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 RedBridge Technologies (using the CAPM)?
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