Zacher Co.'s stock has a beta of 1.50, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's required rate of return? Select the correct answer.   a. 12.10%     b. 12.90%     c. 12.50%     d. 13.30%     e. 13.70%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Zacher Co.'s stock has a beta of 1.50, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's required rate of return?

Select the correct answer.

  a. 12.10%  
  b. 12.90%  
  c. 12.50%  
  d. 13.30%  
  e. 13.70%
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