Suppose the Treasury bond rate is 5%, the average return on the S&P 500 index is 12%,

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Suppose the Treasury bond rate is 5%, the average return on the S&P 500 index is 12%, and XYZ, Inc. has a beta of 1.5. According to the CAPM, what should be the required rate of return on XYZ stock?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Posted Date: Apr 23, 2020 08:29 AM

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Suppose the Treasury bond rate is 5%, the average return on the S&P 500 index is 12%,

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According to CAPM REQUIRE... View the full answer

Fundamentals of Corporate Finance

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