Fair Financial Group is planning to make an equity investment in PayPal Inc. They need to know the expected rate return
Posted: Wed Jul 06, 2022 6:42 pm
Fair Financial Group is planning to make an equity investment in PayPal Inc. They need to know the expected rate return on this investment. Use the CAPM to find it. The expected return of the market is 9% and the return on a risk free asset equals 2.2%. PayPal's Beta equals 1.1 and projects operating income of $9,771,670. Enter your answer as a full percentage number with two decimals, for example, for 12.54% enter 12.54 only.