menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Principles of Corporate Finance
  4. Exam
    Exam 7: Introduction to Risk and Return
  5. Question
    Assume the Following Data: Risk-Free Rate = 4
Solved

Assume the Following Data: Risk-Free Rate = 4

Question 59

Question 59

Multiple Choice

Assume the following data: risk-free rate = 4.0%,average risk premium = 7.7%.
Calculate the required rate of return.


A) 5.6%
B) 7.6%
C) 11.7%
D) 30.8%

Correct Answer:

verifed

Verified

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

Related Questions

Q18: For a portfolio of N-stocks, the formula

Q27: Briefly explain how diversification reduces risk.

Q38: A portfolio with a beta of one

Q41: The covariance between the returns on two

Q53: Which of the following portfolios has the

Q54: What has been the average annual nominal

Q58: If the average annual rate of return

Q61: Which portfolio has had the highest average

Q65: Diversification reduces the risk of a portfolio

Q83: Low standard deviation stocks always have low

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