Question

If the market risk premium is 8%, the risk-free rate is 3.4%, and Nate Corp has...

If the market risk premium is 8%, the risk-free rate is 3.4%, and Nate Corp has a beta of 1.81, what is the required return for Nate Corp?

(Enter your response as a percentage with two decimal places, ex: 12.34)

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Answer #1

required return=risk free rate+Beta*market risk premium

=3.4+(1.81*8)

which is equal to

=17.88%

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