Question: 11. Using CAPM, Cisco has a beta of.9, a market risk premium of 5.7%, and a risk free rate of 1%. What must be Cisco's

 11. Using CAPM, Cisco has a beta of.9, a market risk

11. Using CAPM, Cisco has a beta of.9, a market risk premium of 5.7%, and a risk free rate of 1%. What must be Cisco's required return? a. 10.5% b. 8.6% 6.13% d. 7.9% C. 12. If the market risk premium is 7%, the risk free rate is 2%, and beta of the Abbott Labs is 1.2, the expected return of Abbott Labs is: a. 12.4% b. 11.4% 10.4% d. 9.4% C

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!