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Author Question: The required rate of return on the Cosmos Corporation's common stock is 10%, the current real rate ... (Read 87 times)

Apple716

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Question 1

The markets in general are paying a 1% real rate of return. Inflation is expected to be 3%. RJH stock commands an 8% risk premium. What is the expected rate of return on RJH stock?
◦ 1%
◦ 4%
◦ 9%
◦ 12%

Question 2

The required rate of return on the Cosmos Corporation's common stock is 10%, the current real rate of return in the market is 1%, and the inflation rate is 3%. In this case, the risk premium associated with Cosmos stock is
◦ 5%.
◦ 6%.
◦ 7%.
◦ 8%.


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Marked as best answer by Apple716 on Mar 29, 2022

Sophia0717

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Apple716

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Reply 2 on: Mar 29, 2022
Excellent


ktidd

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Reply 3 on: Yesterday
:D TYSM

 

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