AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 28 Topic 3 Discussion

AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 28 Topic 3 Discussion

GLO_CWM_LVL_1 Exam Topic 3 Question 28 Discussion:
Question #: 28
Topic #: 3

The beta of stock of Akhil Computers Ltd., is 1.5 and is currently in equilibrium. The required return on the stock is 19% and the expected return on the market is 15%. Suddenly due to a change in economic conditions, the expected return on the market increases to 17%. Other things remaining the same what would be new required rate of return on the stock?


A.

17.50%


B.

20.00%


C.

22.00%


D.

25.00%


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