Problema stock has a required return of 16 the risk-free, Ask an Expert

Finance

Problem:

A stock has a required return of 16%; the risk-free rate is 6%; and the market risk premium is 6%.

Required:

Question 1: What is the stock's beta?

Question 2: New stock's required rate of return will be %.

Note: Explain all steps comprehensively.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91175230

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