Electron Corporations returns are 50 percent more sensitive to market moves than the average stock. The market

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Electron Corporation’s returns are 50 percent more sensitive to market moves than the average stock. The market risk premium is 7 percent. The risk‐free rate is 5 percent. What is the required rate of return for Electron?

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Investments Analysis And Management

ISBN: 9781118975589

13th Edition

Authors: Charles P. Jones, Gerald R. Jensen

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