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dexar [7]
3 years ago
14

The estimated beta for RDG is 0.74. The risk free rate of return is 4 percent and the Equity Risk Premium is 5 percent. What is

the required rate of return for RDG using the CAPM
Business
1 answer:
garri49 [273]3 years ago
3 0

Answer:

7.7%

Explanation:

Given :

Risk free rate of return = 4%

Risk premium = 5%

Estimated beta = 0.7

Using the CAPM relation :

The expected return = Risk free rate + (Risk premium * Estimated Beta)

Expected Return = 4% + (5% * 0.74)

Expected Return = 4% + 3.7%

Expected Return = 7.7%

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6 0
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Seth worked a summer job at a camp. His salary accumulated all summer and at the end of the summer he deposited $1890 in a savin
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Answer:

Total amount= $2,055.38

Explanation:

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4 0
2 years ago
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The precautionary principle

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7 0
3 years ago
g Which one of these will increase the present value of a set amount to be received sometime in the future? A) Increase in the t
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Decrease in the interest rate

Explanation:

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let me use an example to illustrate

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