Calculate the current market rate of return

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Reference no: EM132814646

You wish to calculate the current market rate of return. Unfortunately there is a black-out in your area and you were only able to write down the following information:

  • The required return on the shares in Woot Co. is 16% pa.
  • The beta coefficient of Woot Co. is 1.2.
  • The risk free rate of return is 4% pa.

Using the CAPM, what is the market rate of return? Give your answer as a percentage per annum to the nearest percent.

Reference no: EM132814646

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