The market return is expected to be 8.30% and the 3 month T-Bill rate is 4.95%. What is the company's required return if its beta is 2.00? ○ 8.30% 21.55% ○ 6.70% ○ 11.65%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Question
The market return is expected to be 8.30% and the 3 month
T-Bill rate is 4.95%. What is the company's required return if
its beta is 2.00?
○ 8.30%
21.55%
○ 6.70%
○ 11.65%
Transcribed Image Text:The market return is expected to be 8.30% and the 3 month T-Bill rate is 4.95%. What is the company's required return if its beta is 2.00? ○ 8.30% 21.55% ○ 6.70% ○ 11.65%
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