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3 years ago

14

For a risk-free return rate of 5%, a market risk premium of 6%, what is the required rate of return for a security with a beta c

oefficient of 1.5?

1 answer:

adoni [48]3 years ago

3 0

Answer:

14%

Explanation:

required rate of return = risk free rate of return + ( risk premium x beta)

5% + 1.5 x 6% = 14%

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