Accounting Assignment | Custom Assignment Help
September 14th, 2019
An investment has a beta of 1.0. The risk free rate is 2% and current market return is 8%?
- What is the required return?
- So, if you were able to guarantee a return of 7% on this investment, should you go forward with the investment?
- What is the required return if beta is .8 instead?
- So, if you were able to guarantee a return of 7% on this investment, should you go forward with the investment?
Please explain each step – including formulas used