QUESTION 1 Four probable states of the economy may prevail next year.

QUESTION 10

Precept Corp has a beta value of 1.2. If the risk free rate is 2.25% and the Market Risk Premium is 9.25%, what is the Expected/Required return on Precept Corp’s stock? Using the Capital Asset Pricing Model, calculate the expected / required rate of return. (Enter your answer as a percentage, not in decimal form. E.g. 15% should be entered as 15.00 and not as 0.15)