Calculate the Required Rate of Return for Climax Inc

question 29

Multiple Choice

Calculate the required rate of return for Climax Inc. ,assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30,and (5) its realized rate of return has averaged 15.0% over the last 5 years.Do not round your intermediate calculations.

• A) 20.91%
• B) 18.87%
• C) 16.28%
• D) 17.76%
• E) 18.50%

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Narcolepsy

A long-standing disorder that causes significant daytime fatigue and sudden onset of sleep.

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A compelling, often uncontrollable desire to perform an act, frequently associated with obsessive-compulsive disorder.

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A common sleep disorder characterized by trouble falling asleep, staying asleep, or getting restorative sleep, leading to daytime dysfunction and distress.