Using the capm what is the required rate of return for


Using the CAPM, what is the required rate of return for MSFT?

Return on the market portfolio (SPY) and the risk free rate Rf is given below:

Use Yahoo. Finance MSFT beta estimate: b = 1.044; assume RSPY = 10% (based on 40+ years of historical data); and a risk-free rate of Rf = 4.0% (i.e., based on L-T inflation rate of 3.0% and real return of 1.0%).

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Financial Management: Using the capm what is the required rate of return for
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