Zoro corporation has a beta of 20 the risk-free rate of


Zoro Corporation has a beta of 2.0. The risk-free rate of interest is 5%, and the return on the stock market overall is expected to be 13%. What is the required rate of return on Zoro stock?

a. 21%.
b. 41%.
c. 16%.
d. 13%.
e. none of the above

 

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Finance Basics: Zoro corporation has a beta of 20 the risk-free rate of
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