kollo enterprise has beta 0.82 real risk freerate 2.00% investors expected 3.00% future inflation rate, market risk premium is 4.70% what kollo's required rate of return?
2 answers
10.17
Correction: 8.854
Required rate of return = (risk free rate + inflation rate) + stock risk premium
Kollo's required rate of return = (2.00 + 3.00) + 0.82(4.70) = 8.854
Required rate of return = (risk free rate + inflation rate) + stock risk premium
Kollo's required rate of return = (2.00 + 3.00) + 0.82(4.70) = 8.854
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