To calculate the required rate of return, we can use the Capital Asset Pricing Model (CAPM): Required Rate of Return (Cost of Equity) = Risk-Free Rate + Beta * Market Risk Premium Given values: Beta (β) = 1.5 Risk-Free Rate = 6% Market Risk Premium = 10% Required Rate of Return = 6% + 1.5 * 10% Required Rate of Return = 6% + 15% Required Rate of Return = 21% So, the required rate of return is 21%. The answer is b. 21%.
In this question, two statements are followed by two conclusions, numbered I and II. Find out wh conclusion(s) is/are definitely true, based on the giv...
Statement: V > R; C > U > Q; C < R
Conclusion:
I.V > Q
II. V > U
Statement: O ≤ Q, Q ≥ A, A > I, I = D
Conclusion: I. Q > D II. A > D
Statements: C = D ≥ G ≥ H; K ≤ I < H; K < F < E
Conclusions:
I. C ≤ I
II. G > F
III. H ≤ D
Statement: N < M; G ≤ V = M; J > V; K ≥ M
Conclusion:
I. J > K
II. K ≥ J
Statements: S ≥ U < N = A; D > U ≥ C
Conclusions: I. C < D II. S ≥ D
Statements: 1 > 2 ≥ 3 = 4 < 5 ≤ 6; 7 ≥ 8 = 9 < 4 = 10 ≥ 11
Conclusions:
I. 2 ≥ 10
II. 3 < 7
III. 6 > 11
Statements: D = E ≥ G = K, O > B ≤ C = K, E ≤ I < F
Conclusions: I.F > K II. I ≥ G
...Statements: H # I, I @ J, J $ P
Conclusions: a) H # J b) H # P
Statements: X < M = I > G < J ≤ S; Q ≥ M = J; S > T ≥ U
Conclusions:
I. S > M
II. Q > G
III. T ≥ I
...