Question: If the required return from the market is 18% (this is the expected return for the S&P), the risk-free rate is 11%, and the beta

  1. If the required return from the market is 18% (this is the expected return for the S&P), the risk-free rate is 11%, and the beta of Schmeichel Corp. is 1.2, what is the required rate of return on Schmeichel stock?

    a.

    8.40.%
    b.

    11.00%.
    c.

    13.20%.
    d.

    19.40%.

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