The stock of Target Corporation has a beta of 0.84. The market risk premium (=expected return...
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The stock of Target Corporation has a beta of 0.84. The market risk premium (=expected return on market portfolio minus risk-free rate) is 6.33 percent and the risk-free rate is 3.41 percent. What is the required rate of return on this stock? Use the CAPM Equation Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345%, then enter "12.35" The stock of Target Corporation has a beta of 0.84. The market risk premium (=expected return on market portfolio minus risk-free rate) is 6.33 percent and the risk-free rate is 3.41 percent. What is the required rate of return on this stock? Use the CAPM Equation Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345%, then enter "12.35"
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Related Book For
Fundamentals of Financial Management
ISBN: 978-0324302691
11th edition
Authors: Eugene F. Brigham, ? Joel F. Houston
Posted Date:
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