Question

If the risk-free rate is 5.60 percent and the risk premium is 4.6 percent, what is the required return?

Answer 1

Answer:

Required return = 10.2 %

Explanation:

Given:

Risk-free rate = 5.6 %

Risk premium = 4.6 %

Find:

Required return

Computation:

Required return = Risk-free rate + Risk premium

Required return = 5.6 % + 4.6 %

Required return = 10.2 %