What is the firms expected rate of return

Reference no: EM133326299

Question 1) Taggart Inc.'s stock has a 50% chance of producing a 36% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% return. What is the firm's expected rate of return? Do not round your intermediate calculations.

Question 2) Cooley Company's stock has a beta of 0.88, the risk-free rate is 1.90%, and the market risk premium is 5.50%. What is the firm's required rate of return? Do not round your intermediate calculations.

Reference no: EM133326299

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