Suppose the risk-free rate of returns is 7% , the average rate of return on the stock market is 11% . If a mutual fund has a beta of 1.3 , what is the value of its required rate of return?

 What is the value of the market risk premium?

 

Benjamin corporation, a growing computer company software developer, wishes.

 To determine the required return on assets Z, which has a beta of 1.5 . The risk-free rate of return is 7% , the return on the market portfolio of assets is 11% .

Answer rating: 100% (QA)

To calculate the required rate of return for a mutual fund with a beta of 13 we can use the Capital ... View the full answer