Annual return on the stock market

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Reference no: EM131348759

Brodkey Shoes has a beta of 1.30, and the T-bond rate (which is used as the proxy for risk free rate) is 6.5%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 13.00%. Based on the SML, what is the firm's required return?

Reference no: EM131348759

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Annual return on the stock market : Brodkey Shoes has a beta of 1.30, and the T-bond rate (which is used as the proxy for risk free rate) is 6.5%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be ..

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