Explore BrainMass

Explore BrainMass

    Required rate of return

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Suppose rRF = 5% rM = 10% & 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, 11:25 pm ad1c9bdddf
    https://brainmass.com/business/beta-and-required-return-of-a-project/required-rate-of-return-279062

    Solution Summary

    The solution explains the calculation of required rate of return

    $2.19

    ADVERTISEMENT