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Secure https://www.mathxl.com/Student/PlayerTest aspx?testld 168301402&centerwin-yes; Managerial Finance_Fall 2017_Section 1 (9:00-9:50 AM) Quiz: Quiz #4 Submit Quiz This Question: 1 pt 30f 15 (0 complete) | This Quiz: 20 pts possible Capital asset pricing model (CAPM) For the asset shown in the tollowing corner of the data table below in order to copy its contents into a spreadsheet.) table, use the capital asset pricing model to find the required returm. (Click on the icon located on the top-right Risk-free rate, R 7% Market return, Beta, b 1.2 'm 10% The required return for the asset is%(Round to two decimal places, dul Enter your answor in the answor box e Fal 201 7 Section 00.950 AM) is based on Gitman Zutter. Principles of Managerial France BREF tanagerial Finance- 0 Type here to search

Explanation / Answer

Required return=Risk free rate+Beta*(MArket rate-Risk free rate)

which is equal to

=7+1.2*(10-7)

=10.6%

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