Given a stock with a beta of 1.2, risk free rate of 4%, and a market return of 10%, calculate the required return.

11.2%

Explanation:

The required return of this stock can be calculated using the Capital Asset Pricing Model (CAPM) which is expressed as follows;

Required return = Risk free rate + beta ( Market return - risk free rate)

= 4% + 1.2 ( 10% - 4%)

= 11.2%

answer assertive;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.