The return on market portfolio is 12% and the risk-free is 6%. The beta coefficient is 1.3.Using the capital asset pricing model, what is the cost of capital (or required rate of return)? a. 12.8% b....


The return on market portfolio is 12% and the risk-free is 6%. The beta coefficient is 1.3.Using the capital asset pricing model,



what is the cost of capital (or required rate of return)?


a. 12.8%   b. 13.8%   c. 14%   d. 14.8%



If the beta coefficient increases to 1.6, the required rate of return will increase (decrease) by





a. 1.2%   b. 1.4%   c. 1.6%   d. 1.8%





Jun 06, 2022
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