Answer to Question #1115 in Finance for Joel Smith

Question #1115
The real risk-free rate is 2.50%, investors expect a 3.50% future inflation rate, the market risk premium is 5.50%, and Krogh Enterprises has a beta of 1.40. What is the required rate of return on Krogh's stock? (Hint: First find the market risk premium.) (Points : 5) 13.70% 14.50% 15.30% 16.10% 16.90%
1
Expert's answer
2010-11-29T22:18:17-0500
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