Kollo Enterprises Has a Beta of 1

question 124

Multiple Choice

Kollo Enterprises has a beta of 1.10,the real risk-free rate is 2.00%,investors expect a 3.00% future inflation rate,and the market risk premium is 4.70%.What is Kollo's required rate of return?

• A)9.43%
• B)9.67%
• C)9.92%
• D)10.17%
• E)10.42%

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