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  • 23-07-2020
  • Business
contestada

For a risk-free return rate of 5%, a market risk premium of 6%, what is the required rate of return for a security with a beta coefficient of 1.5?

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ewomazinoade ewomazinoade
  • 23-07-2020

Answer:

14%

Explanation:

required rate of return = risk free rate of return + ( risk premium x beta)

5% + 1.5 x 6% = 14%

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