CAPM v2 Next year the expected market return is 5.4% and the risk-free rate is 1%. a.

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CAPM v2 Next year the expected market return is 5.4% and the risk-free rate is 1%.

a. What is the expected return of a stock with a beta of 0.56 according to the CAPM? Answer in percentage form with two decimals (i.e. 12.45%, not 0.1245). %

b. What is the Risk Premium of the market? Answer in percentage form with two decimals (i.e. 12.45%, not 0.1245). %

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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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Posted Date: Jan 09, 2021 07:57 AM

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CAPM v2 Next year the expected market return is 5.4% and the risk-free rate is 1%. a.

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Expected market return 54 Risk free rate 1 a Beta 056 As per CAPM Expected return ... View the full answer

Introduction to Corporate Finance

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