What is the required rate of return on stock

Reference no: EM131794577

Question: The stock of We All Want To Be Finance Students Company has a beta of 1.2. The current risk-free rate of return is 3.2% and the market risk premium is 4%.SHOW ALL WORK FOR FULL CREDIT.

a) What is the required rate of return on this stock?

b) If the expected rate of return is 7%, is this a good buy or a bad buy?

Reference no: EM131794577

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