Answer to Question #1115 in Finance for Joel Smith

Question

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%

Answer 1

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