question archive The stock of WeAllWantToBeFinanceStudents Company has a beta of 0
The stock of WeAllWantToBeFinanceStudents Company has a beta of 0
Subject:FinancePrice:2.87 Bought7
The stock of WeAllWantToBeFinanceStudents Company has a beta of 0.5. The current risk-free rate of return is 2.75% and the market risk premium is 6%.
a) What is the required rate of return on this stock?
b) If the expected rate of return on the stock investment is 6%, is this a good buy or a bad buy? Explain fully.
Option 1
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