You are looking at a potential investment in Sea Blue Company. The stock has a beta of

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You are looking at a potential investment in Sea Blue Company. The stock has a beta of 1.31. The risk-free rate is 1.12% and the market return is 12.32%. According to CAPM, what is the required return on Sea Blue´s stock?

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Jun 16, 2023 12:36 AM

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You are looking at a potential investment in Sea Blue Company. The stock has a beta of

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According to the Capital Asset Pricing Model CAPM the requ... View the full answer

Corporate Finance A Focused Approach

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