Freitag Co has a beta factor of 1.2 and a cost of equity of 9%. The risk free rate of return is 3%.
What is the market rate of return?
The market rate of return is currently ________ %
The correct answer is: 8%.
Ke = Rf+ (E(rm)- Rf)
9% = 3% + 1.2 (E(rm) - 3%)
9% = 3% + (1.2 (E(rm)) - 3.6%
1.2 x E(rm) = 9.6%
E(rm) = 8%
微信号：gaoduntiku
合作账户登录：
账户名：
密码：
关注官方微信
微信号:gaoduneclass
高顿网校
售前咨询(9:00-21:00)
400-168-8811
在线客服点击咨询
售后咨询(9:00-21:00)
021-31068088
fankui@gaodun.com
微信扫一扫实时资讯全掌握
Copyright © 2006- 高顿网校, All Rights Reserved.
(E(rm)- Rf)
