Question: Please only work on this is you understand it. Please also provide how to solve using excel, thank you. 8-9 REQUIRED RATE OF RETURN Stock

Please only work on this is you understand it. Please also provide how to solve using excel, thank you.

Please only work on this is you understand it. Please also provide

how to solve using excel, thank you. 8-9 REQUIRED RATE OF RETURN

8-9 REQUIRED RATE OF RETURN Stock R has a beta of 2.0 , Stock S has a beta of 0.45 , the required return on an average stock is 10%, and the risk-free rate of return is 5%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? 8-11 CAPM AND REQUIRED RETURN Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.6% rate of inflation in the future. The real risk-free rate is 1.0%, and the market risk premium is 6.0%. Mudd has a beta of 1.5 , and its realized rate of return has averaged 8.5% over the past 5 years

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