An analyst does research about capital ass

问题单项选择题

An analyst does research about capital asset pricing model and gathers the following information about a developing country in which the company is located:

Developing country's equity risk premium	3%
Company's equity beta	0.6
Company's market yield of long-term debt	6%

With respect to the capital asset pricing model, if the market risk premium in the investor's developed country is 10% and the risk-free rate is 3.5%, the cost of equity for this company is closest to:（）

A. 9.2%

B. 11.3%

C. 16.0%

答案

参考答案：B

解析：

k=3.5%+0.6×(10%+3%)=11.3%，注意题目中用的是CAPM方法。