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steins corp has a beta of 1 and a standard deviation of returns of 21%. the...

steins corp has a beta of 1 and a standard deviation of returns of 21%. the return on the market portfolio is 9.88% and the risk free rate is 3.44%. according to CAPM what is the required return on steins stock?
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Answer #1

REQUIRED RETURN = Rf + beta(Rm-Rf)

Rm= RETURN ON MARKET, Rf = RISK FREE RATE

REQUIRED RETURN = 3.44% + 1(9.88%-3.44%) = 9.88%

ANSWER : 9.88% (Thumbs up please)

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