Solved: The risk-free rate and the firms beta remain unchanged what, Business Management

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The risk-free rate and the firms beta remain unchanged what

CAPM: req. rate of return

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Mathys Corporation's stock had a required return of 9.60% last year, when the risk-free rate was 3.00% and the market risk premium was 5.50%. Then an increase in investor risk aversion caused the market risk premium to rise by 1.50% from 5.50% to 7.00%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return?

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Business Management: The risk-free rate and the firms beta remain unchanged what

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