The stock of Target Corporation has a beta of 1.17. The market risk premium is 7.97 percent and the risk-free rate is 3.14 percent. What is the required rate of return on this stock? Use the CAPM Equation
Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
required rate of return=risk free rate+Beta*market risk premium
=3.14+(1.17*7.97)
which is equal to
=12.46(Approx).
The stock of Target Corporation has a beta of 1.17. The market risk premium is 7.97...
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