What should be the stocks required rate of return
Problem
The current risk-free rate of return, rRF, is 2 percent and the market risk premium, RPM, is 5 percent. If the beta coefficient associated with a firm's stock is 1.2, what should be the stock's required rate of return?
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If the beta coefficient associated with a firm's stock is 1.2, what should be the stock's required rate of return?
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