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    XYZ company has a beta of -1.

    The risk-free (nominal) rate is 3% per year and that the required rate of return on the market is 10% per year.

    Find the required rate of return.

    © BrainMass Inc. brainmass.com March 4, 2021, 7:55 pm ad1c9bdddf
    https://brainmass.com/business/beta-and-required-return-of-a-project/business-finance-132596

    Solution Preview

    Using the formula

    R = Rf + B(Rm - Rf),

    where R = ...

    $2.49

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