Question: ABC Corporation's share had a rate return that equates to 11.50% last year since: 1. the market risk premium (MRP) was equal to 4.75% and

"ABC" Corporation's share had a rate return that equates to 11.50%

"ABC" Corporation's share had a rate return that equates to 11.50% last year since: 1. the market risk premium (MRP) was equal to 4.75% and 2. the risk-free rate (R) on US treasury bills was equal to 5.50%. Now assume that there is a change in investor risk aversion and the market risk premium rises by 2% What is"ABC" Corporation's new required return if The risk-free rate and "ABC" Corporation's beta remain fixed

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