Sppose the risk free rate rfr 5 average market return rm , Ask an Expert

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Suppose the risk free rate (rfr) = 5%, average market return (rm) = 10%, and the required or expected rate of return E(r) = 12% for TNG stock.

(a) Calculate the Beta (ß) for TNG.

(b) If TNG's Beta (ß) = 2.0, what would be TNG's new required or expected rate of return (r)?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9884615

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