iCorporation has a relative systematic risk level that is 40% greater than the overall market. The expected
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Question:
iCorporation has a relative systematic risk level that is 40% greater than the overall market. The expected return on the market is 16%, and the risk-free rate is 7%. Using the CAPM, the required rate of return for iCorporation is closest to:
A.
19.6%
B.
16.0%
C.
22.4%
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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