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) 2.0%. B) 3.4%. C) 1.5%. D) 4.1%.
C
You might also like to view...
A salesperson has developed a website to attract buyers and sellers. What, if anything, must the salesperson include?
A) Names of the salesperson on each page B) Name of the home office of the company that holds the salesperson's license and a list of states in which the company is licensed C) Name of the sponsoring broker/company D) Name and location of the office that holds the salesperson's license and a list of states in which the salesperson is licensed
Demand for gallons of milk (a perishable item) is normally distributed with a weekly mean of 50 and standard deviation of 15. How many additional gallons of milk must be stocked to increase the service level from 50% to 80%?
What will be an ideal response?