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You are holding a stock that has a beta of 1.91 and is currently in equilibrium. The required return on the stock is 25.60%, and the return on the market portfolio is 17.10%. What would be the new required
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You are holding a stock that has a beta of 1.91 and is currently in equilibrium. The required return on the stock is 25.60%, and the return on the market portfolio is 17.10%. What would be the new required return on the stock if the return on the market increased to 21.00% while the risk-free rate and beta remained unchanged

User Michal Leszczyk
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Answer:

Hence the new required return on the stock if the return on the market increased to 21.00% while the risk-free rate and beta remained unchanged is 33.05%.

Step-by-step explanation:

You are holding a stock that has a beta of 1.91 and is currently in equilibrium. The-example-1
User Erwinheiser
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