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Determine the required return for high water

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The risk-free rate is currently 3.49%. Use the following information to determine the required return for High Water, Inc.

Risk Factor

Coefficient

Price of Risk Factor

Confidence risk

0.5

0.8%

Time horizon risk

1.0

-2.3%

Inflation risk

1.1

1.4%

Business cycle risk

0.9

2.0%

Market-timing risk

1.3

0.9%

Round the final answer to two decimal places in percentage form.

Please write percentage sign in the units box.

Reference no: EM133115540

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