(Answered) Required rate of return for Gamma stock

Management Studies

Problem: The Gamma Corporation has a beta of 2.0. The average stock is yielding 11%, and the risk free rate is yielding 5%.

Required:

Question: What is the required rate of return for Gamma stock, and if its expected return is 18%, is it a good or bad investment? Please show steps how you get an answer and please be clear in your explanation.

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Operation Management, Management Studies

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