What is required rate of return on stock with beta

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1. London purchased a piece of real estate last year for $81,700. The real estate is now worth $101,300. If London needs to have a total return of 0.20 during the year, then what is the dollar amount of income that she needed to have to reach her objective?

2. Required rate of return

Assume that the risk-free rate is 6.5% and the expected return on the market is 10%. What is the required rate of return on a stock with a beta of 2? Round your answer to two decimal places.

Reference no: EM131861393

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