What is Niendorf new required return

Reference no: EM131794287

Question: Niendorf Corporation's stock has a required return of 15.00%, the risk-free rate is 4.00%, and the market risk premium is 5.00%. Now suppose there is a shift in investor risk aversion, and the market risk premium increases by 2.00%. What is Niendorf's new required return?[Hint: compute beta first using existing required rate of return and use the beta to compute the new required return]

Reference no: EM131794287

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