Decker Corp. common stock has a required return of 17.5% and a beta of
Decker Corp. common stock has a required return of 17.5% and a beta of 1.75. If the expected risk
free return is 3%, what is the expected return for the market based on the CAPM?
A) 11.29% B) 15.27% C) 13.35% D) 14.29%
ANSWER
A
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