Brodkey shoes has a beta of 130 and the t-bond rate which


Brodkey Shoes has a beta of 1.30, and the T-bond rate (which is used as the proxy for risk free rate) is 6.5%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 13.00%. Based on the SML, what is the firm's required return?

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Financial Management: Brodkey shoes has a beta of 130 and the t-bond rate which
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