Business, 13.11.2019 17:31 kingofguns1560

You are holding a stock with a beta of 2.0 that is currently in equilibrium. the required rate of return on the stock is 15% versus a required return on an average stock of 10%. now the required return on an average stock increases by 30.0% (not percentage points). the risk-free rate is unchanged. by what percentage (not percentage points) would the required return on your stock increase as a result of this event?

a. 36.10%
b. 38.00%
c. 40.00%
d. 42.00%

the sml relates required returns to firms

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You are holding a stock with a beta of 2.0 that is currently in equilibrium. the required rate of re...

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