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Lawrence is trying to use the CAPM to estimate the required return for Oracle Corporation, a database software company. He assumes that the expected market return will be 11.03% and the risk free rate will be 2.69%. If Oracle's beta is 0.80, what should Lawrence's required return be?

Multiple Choice
a. 9.36%
b. 6.67%
c. 11.51%
d. 2.76%

User Tatters
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1 Answer

6 votes

Answer:

A: 9.36%

Step-by-step explanation:

Lawrence's required return for Oracle Corporation should be 9.36%

Lawrence is trying to use the CAPM to estimate the required return for Oracle Corporation-example-1
User WoutVanAertTheBest
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