portfolio question for finance 3

Business & Finance
Tutor: None Selected Time limit: 1 Day

Question 3

King Farm Manufacturing Company’s common stock has a beta of 1.36. If the risk-free rate is 3.70 percent, and the market return is 8.83 percent, calculate the required return on King Farm Manufacturing’s common stock.

Round the answers to two decimal places in percentage form.

Oct 3rd, 2015

Thank you for the opportunity to help you with your question!

require return rate = risk free return +beta*(market return - risk free return) = 0.0370+1.36*(0.0883-0.037)  =10.68%

Please let me know if you need any clarification. I'm always happy to answer your questions.
Sep 18th, 2015

Thank you.

Sep 19th, 2015

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Oct 3rd, 2015
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Oct 3rd, 2015
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