Multiple Choice
Assume that you are considering investing in Xerox common stock.You have found that its beta is +1.2 and you think a market risk premium should be 8%.If you could earn 12% on risk-free Treasury securities,Xerox has a required return of ________%.
A) 24.0
B) 14.4
C) 21.6
D) 22.4
Correct Answer:
Verified
Correct Answer:
Verified
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