Multiple Choice
The beta for the DAK Corporation is 1.25. The yield on 30-year T-bonds is 5.65 percent, and the long-term average return on the S&P 500 is 11 percent. Calculate the required rate of return for DAK Corporation.
A) 12.34 percent
B) 7.06 percent
C) 13.74 percent
D) 5.35 percent
E) 5.65 percent
Correct Answer:

Verified
Correct Answer:
Verified
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