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loris [4]
3 years ago
13

Calculate the required rate of return for Avy Inc., assuming that the company has a beta of 1.10, while investors expect treasur

y bills to be yielding 3.0%, with a market risk premium is 5.0%.
Business
1 answer:
drek231 [11]3 years ago
3 0

Answer:

8.5%

Explanation:

Avy incorporation has a beta of 1.10

The risk free rate is 3.0%

The market risk premium is 5.0%

Therefore, the required rate of return can be calculated as follows

Required rate of return= Risk-free rate+beta(market Risk premium)

= 3.0% + 1.10(5.0%)

= 3.0%+5.5

= 8.5%

Hence the required rate of return is 8.5%

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Increase the depth of.

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Lena invested her savings in two investment funds. The $6000 that she invested in Fund A returned a 6% profit. The amount that s
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Answer:

The amount that Lena will invest in fund B would be $4000.

Explanation:

Given information -

Amount invested in fund A - $6000

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I go to the same school!

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What about you?

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