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What is the minimum acceptable return for idm

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Question 1: IDM's current stock price is $65.00. Analysts forecast that IDM's stock price will be $90 in one year, and its Beta is 1.25. Using the CAPM, what is the minimum acceptable return for IDM, assuming a risk-free rate of 2.5 percent and equity (or market) risk premium of 4.5 percent?

Option A. 8.13%

Option B. 7.00%

Option C. 5.63%

Option D. 5.00%

Reference no: EM132584588

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