There are some less risky assets in the portfolio of XYT BhD company that can...
80.2K
Verified Solution
Link Copied!
Question
Accounting
There are some less risky assets in the portfolio of XYT BhD company that can cause the beta value to decrease by 25% where the initial beta value is 1.50. Also stated, the required initial required rate of return is 13.90%. and the market risk premium is 7.40%. In addition, inflation is also expected to decline by 0.55%. Using the data provided, what is the stock's new required rate of return?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
