Multiple Choice
Diddy Corp stock has a beta of 1.0, the current risk-free rate is 5%, and the expected return on the market is 15.5%. What is Diddy's cost of equity?
A) 15.50%
B) 14.20%
C) 18.50%
D) 16.30%
Correct Answer:
Verified
Correct Answer:
Verified
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