The risk-free rate is currently 2.01 %. Use the following information to determine the required return for
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Question:
The risk-free rate is currently 2.01 %. Use the following information to determine the required return for High Water, Inc.
Risk Factor | Coefficient | Price of Risk Factor |
Confidence risk | 1.1 | 2.1% |
Time horizon risk | 0.2 | -1.5% |
Inflation risk | 0.5 | 2.5% |
Business cycle risk | 0.9 | 1.4% |
Market-timing risk | 0.6 | 1.6% |
Round the final answer to two decimal places in percentage form.
Related Book For
Introduction to Probability and Statistics
ISBN: 978-1133103752
14th edition
Authors: William Mendenhall, Robert Beaver, Barbara Beaver
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