Solution-Required rate of return on the stock

Required rate of return on the stock

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Reference no: EM131387884

The risk-free rate is 4.2%, the market risk premium is 10.8%, and the stock's beta is 0.32. What is the required rate of return on the stock, E(Ri)?

Use the CAPM equation.

Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Reference no: EM131387884

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Required rate of return on the stock

Reference no: EM131387884

Reference no: EM131387884

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