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    ClubUpscale's Avatar
    ClubUpscale Posts: 1, Reputation: 1
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    #1

    Nov 2, 2007, 11:08 AM
    Rate of return on stock
    Assume that the risk free rate is 5% and the market risk premium is 6%. What is the required rate of return on a stock that has a beta of 1.2?
    manik chand dey's Avatar
    manik chand dey Posts: 63, Reputation: 2
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    #2

    Sep 22, 2008, 11:17 PM
    Risk free rate is 5%, Market risk premium is 6%, beta is 1.2
    Required rate of return is 5%+(1.2*6%)
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