Freightway Trucking Inc.uses the CAPM to help estimate their cost of equity.Given the following information,what is the firm's estimated cost of equity? The risk-free return in the market is currently 3%,the market risk premium is 8%,the expected return on the market portfolio if 11% and the firm has a beta of 1.50
A) 7.50%
B) 15.00%
C) 10.50%
D) 19.50%
Correct Answer:
Verified
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