Parr Paper's stock has a beta of 1.06 , and its required return is $7%$ . Clover Dairy's stock has a beta of 0.98 . If the risk-free rate is $2.4%$ , what is the required rate of return on Clover's stock? (Hint: First find the market risk premium.) $6.35%$ $5.45%$ $6.05%$ $5.75%$ $6.65%$

Question

Parr Paper's stock has a beta of 1.06 , and its required return is

7%

. Clover Dairy's stock has a beta of 0.98 . If the risk-free rate is

2.4%

, what is the required rate of return on Clover's stock? (Hint: First find the market risk premium.)

6.35%

5.45%

6.05%

5.75%

6.65%

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(Solved): Parr Paper's stock has a beta of 1.06 , and its required return is 7%. Clover Dairy's stock has a b ...