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What is the market beta of fast corporation

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1. What is the market beta of Fast Corporation considering that the expected rate of return is 14%, its risk-free rate is 7% and the market risk premium is 4%.

2. Corporación Xoom's common stock has a beta coefficient of 1.3. The market risk premium is 7% and the risk-free rate is 3%.

a. What is the required rate of return on these stocks, according to the CAPM?

b. Using the information provided in the previous point, what is the required rate of return on the ordinary shares of Corporación Express? These stocks have a beta coefficient of 0.5.

Reference no: EM132666811

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