alleryStart learning →Beta 1.25, Rf 6.4%, market premium 5.2%. CAPM cost of equity?
A14.2%
B12.9%
C11.7%
D13.6%
Answer & Solution
Correct answer: B. 12.9%
1.25 x 5.2 = 6.5, and 6.4 + 6.5 = 12.9%.
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