Risk as well as return computation using capital asset

Reference no: EM1316501

Risk as well as return computation using capital asset pricing model

Emery Inc. has a beta equal to 1.5 and a required return of 14% based on the CAPM. If the market risk premium is 8%, the risk-free rate of return is ________.

a. 4%
b. 3%
c. 2%
d. 1.5%

Reference no: EM1316501

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