Zacher Co'S Stock Has a Beta of 1

question 71

Multiple Choice

Zacher Co.'s stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is 5.50%.What is the firm's required rate of return?

• A) 11.36%
• B) 11.65%
• C) 11.95%
• D) 12.25%
• E) 12.55%

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