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ZanzabumX [31]
3 years ago
5

Mulherin's stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 2.30%. What is the required rate o

f return on the market? (Hint: First find the market risk premium.) Do not round your intermediate calculations. a. 9.98% b. 7.69% c. 8.19% d. 12.38% e. 10.58%
Business
1 answer:
koban [17]3 years ago
3 0

Answer:

a. 9.98%

Explanation:

The computation of required rate of return is shown below:-

Required return= Risk - Free rate + Beta × (Market rate- Risk-free rate)

11.75% = 2.30% + 1.23 × (Market rate - 2.3%)

(11.75% - 2.30%) ÷ 1.23 = Market rate - 2.3%

Market rate = (11.75% - 2.30%) ÷ 1.23 + 2.3%

=9.98%

Therefore for computing the required rate of return on the market we simply applied the above formula.

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Scilla [17]

Answer:

As discussed below.

Explanation:

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  • Thus has also been criticized as each and every investment has various risks associated with it.  
  • The fact there exists some cautions and concerns about the accumulation of private property, privately owned lands and the space that they gather for the single individual as the case of various frauds and fugitives openly roaming in the market causing loss or dissolution of a financial asset of the government.
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Answer:

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2 years ago
If a central bank wishes to reduce inflation, it should announce its intentions and follow through with them, thereby using ____
Mice21 [21]

Answer:

C. credible

Explanation:

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Hence, the correct option is C.

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Answer:

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Explanation:

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Answer:

the fill in the blank answer is: the customer's

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