1. A company's stock had a required return of 11.50% last year, when the risk-free rate was 5.50% and the market risk premium was 7.45%. Now, suppose there is a shift in investor risk aversion, and the market risk premium increases by 2%. The risk-free rate and the beta remain unchanged. What is this company's new required return (round your answer to two decimal places)? 

Answer rating: 100% (QA)

To calculate the companys new required return we need to consider the ... View the full answer