Tansen Ltd. has a beta of 0.80. If the expected market return is 21.50 and the risk free rate of return is 9.50%. Using CAPM mode to calculate the appropriate required rate of return :

CS Executive · Financial and Strategic Management · PYQS · June 2021
Tansen Ltd. has a beta of 0.80. If the expected market return is 21.50 and the risk free rate of return is 9.50%. Using CAPM mode to calculate the appropriate required rate of return :
(A) 19.10%
(B) 20.10%
(C) 20.30%
(D) 22.00%

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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