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    Required rate of return

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    What is the required rate of return for ABC, Inc if investors expect a 5% rate of inflation in the future? ABC has a beta of 2 and the company's realized rate of return has averaged 15% over the last 5 years. The real risk free rate is 3% and the market risk premium is 5%.

    © BrainMass Inc. brainmass.com June 3, 2020, 6:31 pm ad1c9bdddf
    https://brainmass.com/business/beta-and-required-return-of-a-project/required-rate-return-example-problem-63610

    Solution Summary

    Required rate of return is examined.

    $2.19

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