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    Calculate Stock Beta & Required Rate to Return

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    Suppose rRF = 5%, rM = 10%, and rA = 12%.
    a. Calculate Stock A's beta.
    b. If stock A's beta were 2.0, what would be A's new required rate of return?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:53 pm ad1c9bdddf
    https://brainmass.com/business/beta-and-required-return-of-a-project/305350

    Solution Summary

    The solution computes the stock beta and the required rate of return.

    $2.19

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