menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Corporate Financial Management
  4. Exam
    Exam 8: The Capital Asset Pricing Model and Multi-Factor Models
  5. Question
    A Firm Has a Beta of 1
Solved

A Firm Has a Beta of 1

Question 24

Question 24

Multiple Choice

A firm has a beta of 1.2. The market return equals 14% and the risk- free rate of return equals 6 %. The estimated cost of ordinary equity is


A) 6%
B) 15.6%
C) 14%
D) 7.2%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q19: Asset Y has a beta of 1.2.

Q21: What return would you expect if the

Q22: Use of the Capital Asset Pricing Model

Q23: The cost of ordinary equity may be

Q25: What are the two variables whose relationship

Q26: Which model would you be adopting if

Q27: In the capital asset pricing model, the

Q28: What is represented by the symbol rf

Q29: What does beta measure?<br>A) The level of

Q80: The capital asset pricing model describes the

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines