The market return is expected to be 8.30% and the 3 month T-Bill rate is 4.95%. What is the company's required return if its beta is 2.00? ○ 8.30% 21.55% ○ 6.70% ○ 11.65%

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
Problem 2MC
Question
The market return is expected to be 8.30% and the 3 month
T-Bill rate is 4.95%. What is the company's required return if
its beta is 2.00?
○ 8.30%
21.55%
○ 6.70%
○ 11.65%
Transcribed Image Text:The market return is expected to be 8.30% and the 3 month T-Bill rate is 4.95%. What is the company's required return if its beta is 2.00? ○ 8.30% 21.55% ○ 6.70% ○ 11.65%
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