BBB Inc
Subject:FinancePrice:2.86 Bought11
BBB Inc.'s stock has a beta of 1.3, the risk-free rate is 2.15%, and the market risk premium is 5.75%. What is BBB's required rate of return? Do not round your intermediate calculations.
a. 9.63% b. 6.28% c. 8.83% d. 6.05% e. 6.46%
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Required rate of return = Risk free rate + beta (market premium)
= 2.15% + 1.3 (5.75%)
= 9.625%
Answer = 9.63%
