The stock of pizza hot inc a mexican pizza chain has an, Ask an Expert

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The stock of Pizza Hot, Inc., a Mexican pizza chain, has an estimated beta of 1.5. Calculate the required rate of return on Pizza Hot's stock if the SML is estimated as follows:

k_j= 0.06 +0.094β_j

based on

a. An initial inflation expectation of 4 percent.

b. A new inflation expectation of 6 percent.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92092305

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