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Kollo Enterprises Has a Beta of 1

question 124

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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?


Definitions:

Responding

involves giving a reaction or answer to a stimulus or situation through behavior or action.

Punish

The process of applying an aversive consequence to reduce the likelihood of a behavior occurring in the future.

Act Out

To behave badly or inappropriately, often in response to emotional stress or frustration.

Positive Punishment

The use of a physically or psychologically painful event as the punishment.

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