Compute the return the firm should earn given level of risk

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Reference no: EM131844431

A manager believes his firm will earn a 16.80 percent return next year. His firm has a beta of 1.31, the expected return on the market is 13.40 percent, and the risk-free rate is 6.40 percent.

Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.)

A manager believes his firm will earn a 16.80 percent return next year. His firm has a beta of 1.31, the expected return on the market is 13.40 percent, and the risk-free rate is 6.40 percent.

Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.)

Required return %

Reference no: EM131844431

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