A manager believes his firm will earn a 16.80 percent return next year. His firm has a beta of 1.31, the expected return on the market is 13.40 percent, and the risk-free rate is 6.40 percent.
Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.)
A manager believes his firm will earn a 16.80 percent return next year. His firm has a beta of 1.31, the expected return on the market is 13.40 percent, and the risk-free rate is 6.40 percent.
Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.)
Required return %
Required return %