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    Required rate of return

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    Investors expect 5% rate of inflation in the future.
    Real risk-free rate is equal to 3%
    The market risk premium is 5%.
    The beta is 2.0
    The realized rate of return has averaged 15% over the last five years.

    What is the required rate of return.

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    Investors expect 5% rate of inflation in the future.
    Real risk-free rate is equal to 3%
    The market risk premium is 5%.
    The beta is 2.0
    The realized rate of return has averaged 15% over the last five years.
    What is the required ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the required rate of return.

    $2.19