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CCC Corp. has beta 1.5 and is currently in equilibrium. Required rate of return on stock is

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CCC Corp. has beta 1.5 and is currently in equilibrium. Required rate of return on stock is 12% versus required return on average stock which is 10%. Now the required return on average stock increases by 30% (not percentage points). Neither betas nor risk free rate change. What would CCC’s new required return be?

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Computation of the CCC New Required Return CCCs beta 150 CCCs initial r...View the full answer


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Pushpinder Singh
Currently, I am PhD scholar with Indian Statistical problem, working in applied statistics and real life data problems. I have done several projects in Statistics especially Time Series data analysis, Regression Techniques. I am Master in Statistics from Indian Institute of Technology, Kanpur. I have been teaching students for various University entrance exams and passing grades in Graduation and Post-Graduation.I have expertise in solving problems in Statistics for more than 2 years now.I am a subject expert in Statistics with Assignmentpedia.com.
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