The required rate of return on a stock with a beta of 3 = 17.00%
In finance, stock includes all of the shares by way of which possession of an enterprise or employer is divided. An unmarried share of the stock approach fractional ownership of the organization in share to the full range of stocks. An inventory is a well-known time period used to describe the possession certificates of any agency.
The required return of a stock can be calculated with the help of the CAPM function
Required return = Risk free rate + Beta*(Market return - Risk free rate)
= 6.50% + 3.00*(10% - 6.50%)
= 6.50% + 10.50%
= 17.00%
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