AA Corporation’s stock has a beta of 0.8. The risk-free rate is 2.5% and the expected return on the market is 14%. What is the required rate of return on AA's stock? Round your answer to two decimal places.?
Required return=risk free rate+beta*(market rate-risk free rate)
=2.5+0.8*(14-2.5)
which is equal to
=11.7%
AA Corporation’s stock has a beta of 0.8. The risk-free rate is 2.5% and the expected...
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