The risk-free rate of interest is 4% and the market risk premium is 9%. howard corporation has a beta of 2.0, and last year generated a return of 16% with a standard deviation of returns of 27%. the required return on howard corporation stock? is:
a. 26%.
b. 22%.
c. 14%.
d. 36%.

B. 22%.

Explanation:

Capital asset pricing model (CAPM) relates the required rate of return on an asset to its riskiness, as measured by the asset's beta. An asset's beta is the volatility of the asset's returns relative to the volatility of market returns. The expected return on the asset = risk-free rate + beta * market risk premium.

===> 4%+ 2x9% ===> 22%.

the answer to this question would be shared investment

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!