Find what is ritter required rate of retur

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Problem 1: Preston, Inc.'s stock has a 25% chance of producing a 48% return, a 50% chance of producing an 11% return, and a 25% chance of producing a -24% return. What is the firm's standard deviation of return?

Problem 2: Ritter Company's stock has a beta of 1.95, the risk-free rate is 3.75%, and the required return on the market portfolio is 11.50%. Using CAPM, what is Ritter's required rate of return?

Reference no: EM132696476

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