Re: [ vuZs.net ] MGT411- problem plz reply me

how r u?

Its simple yar. you have put right formula for risk premium which is

Risk premium= Required rate of return- Risk free rate of return

                    = 16% -7%

                   =9%

you can check it as;

required rate of return =Rf + risk premium

                            Rc = 9%+7%

                                =16%

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