Italy's Olivetti has a beta of 1.0 when measured against the MSCI world stock market index and
Question:
a. If the market risk premium on the MSCI world index is 4 percent, what is the required return on Olivetti stock?
b. If the market risk premium on the BancaCommerziale index is 5 percent, what is the required return on Olivetti stock?
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Related Book For 
Multinational Finance Evaluating Opportunities Costs and Risks of Operations
ISBN: 978-1118270127
5th edition
Authors: Kirt C. Butler
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