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What the required rate of return for the stocks

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Reference no: EM133073432

Question - Suppose investors expect a 3.0% inflation rate in the future. The real risk-free rate is 2.0%, and the market risk premium is 7.0%. The stock of Everest Expeditions has a beta of 1.5. The stock's realized rate of return was averaged at 15.0% over the last 5 years. What the required rate of return for the stocks of Everest Expeditions?

a. 22.00%

b. 15.5%

c. 15%

d. 12.60%

Reference no: EM133073432

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