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the risk-free rate.
the beta for the firm.
the earnings for the next time period.
the market return expected for the time period.
Correct option is "the earnings for the next time period."
The earnings for the next time period is not necessary to compute the required rate of return for equity in a company using CAPM.
my answer is C..........the earnings for the next time period
correct answer is there is more systematic risk involved for the common stock
>>>>>> the earnings for the next time period.
C..............................................................
Except the earnings required for the next time period
c-------------------------the earnings for the next time period.
the earnings for the next time period. is correct answer.,,,,,,,,,,,,,,,,,...................,,,,,,,,,,,,,,