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Management · Q814

Financial Management

Graduate and Post Graduate · Management · question 814

Q814

Market risk premium is 8% and risk free return is 7% then market required return would be

A.
15.00%
Answer
B.
1.00%
C.
5.60%
D.
1.14%

Answer: Option A

Solution

Answer: Option A
Solution:
Required market return = Market risk premium + Risk free return
= 8% + 7% = 15%.