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a stock have a beta of 1.45 the risk free rate is 2.7 percent and the...

a stock have a beta of 1.45 the risk free rate is 2.7 percent and the market risk premium ks 7.5 percent. what is the stocks required return
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Answer #1

Required Ret = Risk Free rate + Beta ( Market risk Premium )

= 2.7% + 1.45 ( 7.5%)

= 2.7% + 10.875%

= 13.575%

required ret for stock is 13.575%

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