# Required rate of return

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