FIANCE 50 HELP ASAP Calculate the required return for a Company Z that has a beta of 1.4 if the market risk premium is 9% and the risk-free rate is 4%.

Question

asked Aug 2, 2021 211k views

1 Answer

asked Jul 27, 2021 87.7k views

Andrey Mishchenko asked Jul 27, 2021

9.0k points

1 answer

2 votes

87.7k views

asked Jul 14, 2024 6.2k views

Michael Burr asked Jul 14, 2024

7.7k points

1 answer

4 votes

6.2k views

asked Aug 25, 2024 163k views

Amir Beygi asked Aug 25, 2024

7.7k points

1 answer

4 votes

163k views

Jitesh Dalsaniya · Answer 1 · 2021-08-07T18:50:08+0000

Calculate the risk measure (beta) compared to the returns of asset and market premium.

1.4 = 4 + 9((rm^-4)

1.4 = 9rm ^-32

33.4 = 9rm

Rm = 3.71

The answer is 3.71