Roar Corp has a beta of 1.3. If the risk-free rate is 5% and the market...

Question

Question

Roar Corp has a beta of 1.3. If the risk-free rate is 5% and the market risk premium is 9%, what is the expected return of Roar Corp?

business finance

Answer 1

Answer #1

Expected rate=risk free rate+Beta*market risk premium

=5+(1.3*9)

which is equal to

=16.7%

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Answer 2

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