Assume that you are considering investing in Xerox common stock. You h
Assume that you are considering investing in Xerox common stock. You have found that its beta is +1.2 and you think a market risk premium should be 8%.
If you could earn 12% on risk-free Treasury securities, Xerox has a required return of ________%.
A)
24.0
B)
14.4
C)
21.6
D)
22.4
ANSWER
C
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