x G federal funds ra D FNB 100 Final uny STUDENTS XRV CUNY Login ezto.mheducatio

Question

x G federal funds ra D FNB 100 Final uny STUDENTS XRV CUNY Login ezto.mheducation.com/hm.tpx connect. FNB 100 Principles of Finance: Fal FINANCE B 100 Final Question 16 (of 25) value 4.00 points Problem 10-7 CAPM Required Return (LG3) Hastings Entertainment has a beta of 0 24. If the market return is expected to be 11 percent and the risk- free rate is 4 percent, what is Hastings required return? (Round your answer to 2 decimal places.) Hastings' required return References eBook & Resources Worksheet Problem 10-7 CAPM Required Retünn (LG3) Check my work

Explanation / Answer

Required Return = Risk Free Rate + Beta * (Market Rate - Risk Free Rate)

= 4 + 0.24 (11-4)

= 4 + 1.68

= 5.68%

Hasting's Required Return = 5.68%

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