question archive The stock of WeAllWantToBeFinanceStudents Company has a beta of 1
The stock of WeAllWantToBeFinanceStudents Company has a beta of 1
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The stock of WeAllWantToBeFinanceStudents Company has a beta of 1.2. The current risk-free rate of return is 3.2% and the market risk premium is 4%.
a) What is the required rate of return on this stock?
b) If the expected rate of return is 7%, is this a good buy or a bad buy?
Option 1
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