The required return on Beta stock is 14%. The risk-free rate of return is 4% and the real rate of return is 2%. How much are investors requiring as compensation for risk?
A) 8%
B) 10%
C) 12%
D) 14%

Question

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The Answer of The required return on Beta stock is 14%. The risk-free rate of return is 4% and the real rate of return is 2%. How much are investors requiring as compensation for risk?
A) 8%
B) 10%
C) 12%
D) 14%

The Required Return on Beta Stock Is 14