Surf and Spray Inc

question 36

Multiple Choice

Surf and Spray Inc.has a beta equal to 1.8 and a required return of 15% based on the CAPM.If the market risk premium is 7.5%,the risk-free rate of return is

• A) 4.1%.
• B) 3.4%.
• C) 2.0%.
• D) 1.5%.

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