Scheuer Enterprises Has a Beta of 1

question 5

Multiple Choice

Scheuer 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 Scheuer's required rate of return?

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

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