# Question

State three of the assumptions underlying the capital asset pricing model (CAPM).

## Answer to relevant Questions

Calculate the missing values for the following five efficient portfolios. The expected return on the market is 8 percent, with a standard deviation of 5 percent, and the risk-free rate is 2percent.Estimate the beta of the following stock: market risk premium = 25 percent, RF = 6 percent, P0 = $10, expected dividend at the end of the year = $2.50, P1 = $12.50. Assume the market is in equilibrium.Determine the beta of QTax based on the following information:• Market expected return is 8 percent; standard deviation is 3 percent• Risk-free rate is 3 percent• Current dividend is $4.50• Dividend growth rate is 5 ...You are valuing the Vancouver Rain-Making Company (VRM) and need to calculate the following:a. Required rate of return b. Price of VRM based on the current dividend of $1.25 and a dividend growth rate of 3 percent.The Health Bracelet Company will need 1,000 kg of copper in one year and is trying to decide between buying the copper on the spot market and using a forward contract. The spot price of copper is $15 per kilogram. The ...Post your question

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