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For a risk-free return rate of 5%, a market risk premium of 6%, what is the required rate of return for a security with a beta coefficient of 1.5?
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For a risk-free return rate of 5%, a market risk premium of 6%, what is the required rate of return for a security with a beta coefficient of 1.5?

User Jan Tattermusch
by
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1 Answer

4 votes

Answer:

14%

Step-by-step explanation:

required rate of return = risk free rate of return + ( risk premium x beta)

5% + 1.5 x 6% = 14%

User Mushky
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4.1k points
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