ABC, Inc., has a beta of 1.19. The risk-free rate is 2.91% and the market risk premium is 7.89%. What is the required rate of return on ABC's stock?Note: Convert your answer to percentage and round off to two decimal points.
Calculation of required rate of return:
Required rate of return= risk free rate+ beta*market risk premium
Required rate of return= 2.91+(1.19*7.89)= 12.30%
Required rate of return= 12.30%
ABC, Inc., has a beta of 1.19. The risk-free rate is 2.91% and the market risk...
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