ABC, Inc., has a beta of 2.03. The risk-free rate is 2.3% and the market risk premium is 6%. What is the required rate of return on ABC's stock?
required rate of return=risk free rate+Beta*market risk premium
=2.3+2.03*6
which is equal to
=14.48%
ABC, Inc., has a beta of 2.03. The risk-free rate is 2.3% and the market risk...
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