The Market Risk Premium used in the CAPM model is derived from: A the historical return on

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The Market Risk Premium used in the CAPM model is derived from:

A the historical return on the firm's stock minus the current risk-free rate.

B the historical return on the market (S&P 500) minus the current risk-free rate

C beta times the historical return on the firm's stock

D beta times the risk-free rate

E the historical return on the market (S&P 500) minus the historical return on US Treasury debt

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1285190907

8th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Feb 09, 2024 08:43 AM

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The Market Risk Premium used in the CAPM model is derived from: A the historical return on

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ANSWER IS The correct answer is B the historical return on t... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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