6.5% + 1.67*(18% – 6.5%) = 25.7% How come ?
According to me
Tutor workings :
6.5% + 1.67*(18% – 6.5%) = 25.7% this is a CAPM formula but I suspect that does not make a difference.
Mine :
.065 + 1.67 x (0.18 - 0.065)
1.735 x 0.0115
0.0199
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PEMDAS
Multiplication before addition
6.5% + [1.67*(18% – 6.5%)] = 25.7%
= .065 + [1.67 * (0.18 - 0.065)]
= 0.257