The risk-free rate of return is currently 4 percent, whereas the market risk premium is 6 percent. If the beta of Lenz, Inc. stock is 1.78, then what is the expected return on Lenz? Round the answer to 3 decimal places and present percentage as a decimal.
The risk-free rate of return is currently 4 percent, whereas the market risk premium is 6 percent. If the beta of Lenz, Inc. stock is 1.78, then what is the expected return on Lenz? Round the answer to 3 decimal places and present percentage as a decimal.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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