TechNova Inc. stock has a beta of 1.50 and its required return is 14.5%. Green Meadow Farms stock has a beta of 0.75. If the risk-free rate is 5%, what is the required rate of return on Green Meadow Farms' stock?

TechNova Inc. stock has a beta of 1.50 and its required return is 14.5%. Green Meadow Farms stock has a beta of 0.75. If the risk-free rate is 5%, what is the required rate of return on Green Meadow Farms' 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

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 4P: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market...

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Question

Hii teacher please given answer general accounting question

TechNova Inc. stock has a beta of 1.50 and its required
return is 14.5%. Green Meadow Farms stock has a beta of
0.75. If the risk-free rate is 5%, what is the required rate of
return on Green Meadow Farms' stock?

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