A1 X V fx A B C D E F G H UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT Chapter 5 -- Financial Risk and Required Return PROBLEM 8 Calculate the required rate of return for Mars Inc.'s stock. The Mars beta is 1.2, the rate on a T-Bill is 4 percent, the rate on a long-term T-Bond is 6 percent, the required return on the 8 market is 11.5 percent, the market has averaged a 14 percent annual return over the last six years, 9 and Mars has averaged a 14.4 percent return over the past six years. 10 11 ANSWER 12 13