A company's stock had a required return of 11.50% last year, when the risk-free rate was 5.50%
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- 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)?
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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