Explore BrainMass

Explore BrainMass

    Required rates of return given beta of stock

    Not what you're looking for? Search our solutions OR ask your own Custom question.

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

    Assume that the risk free rate is 3.5% and that the market risk premium rate is 7%.

    What is the required rate of return on a stock with a beta of 0.8%. round answer to two decimal places. ______________%

    What is the required rate of return on a stock with a beta of 1.6? round answer to two decimal places. ________________%

    © BrainMass Inc. brainmass.com September 27, 2022, 10:40 am ad1c9bdddf
    https://brainmass.com/business/beta-and-required-return-of-a-project/required-rates-return-given-beta-stock-429087

    Solution Preview

    Required rates of return

    Assume that the risk free is 3.5% and that the market risk premium is 7%.

    Required ...

    Solution Summary

    This solution helps in computing required rates of return given beta of stock.

    $2.49

    ADVERTISEMENT