CORPORATE FINANCE- ACCESS >C<
CORPORATE FINANCE- ACCESS >C<
12th Edition
ISBN: 9781307447248
Author: Ross
Publisher: MCG/CREATE
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Chapter 11, Problem 34QAP
Summary Introduction

Adequate information:

Beta of Pete Corp (ßP) = 1.25

Beta of Repete Co. (ßR) = 0.85

Expected return of Pete Corp [E(RP)] = 13.28%

Expected return of Repete Co. [E(RR)] = 10.12%

To compute: The expected return on the market and the risk-free rate.

Introduction: Expected return simply refers to the return that is anticipated on the investment.

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CORPORATE FINANCE- ACCESS >C<

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