What is the required rate of return for a stock with a beta


1. The rate of return on the U.S. government treasury bill is 0.03 and the expected rate of return on the Wilshire 5000 is 0.07. What is the required rate of return for a stock with a Beta 1.26?

2. Emmons Corporation has a 0.1 probability of a return of 0.11, a 0.3 probability of a rate of return of 0.05, and the remaining probability of a 0.2 rate of return. What is the variance in the expected rate of return of Emmons Corporation?

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Financial Management: What is the required rate of return for a stock with a beta
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