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100 POINTS!!! NEED ASAP!! Which of these statements is true regarding the enlistment to calculate the required return for a Company Z that has a beta of 1.4 if the market risk premium is 9% and the risk-free
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100 POINTS!!! NEED ASAP!! Which of these statements is true regarding the enlistment to calculate the required return for a Company Z that has a beta of 1.4 if the market risk premium is 9% and the risk-free rate is 4%.

User Chintan Bawa
by
3.6k points

1 Answer

4 votes

Answer: The answer is 3.71

Explanation: 1.4 = 4 + 9((rm^-4)

1.4 = 9rm ^-32

33.4 = 9rm

Rm = 3.71

User Uinstinct
by
4.2k points
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