Multiple Choice
The risk-free rate of return is 5.51%, based on an expected inflation premium of 2.54%. The expected return on the market is 12.8%. What is the required rate of return for Envoy common stock which has a beta of 1.35?
A) 6.98%
B) 16.24%
C) 15.35%
D) 12.80%
Correct Answer:
Verified
Correct Answer:
Verified
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