c$.$ What is the market risk premium?

Problems

$9-5$ Assume that the risk$-$free rate is $7\%$ and the expected market return is $13\%.$ Show that the security market line is

$-K_i=7\mathrm{.}0+6\mathrm{.}0$

Assume that an investor has estimated the following values for six different corporations:

Calculate the $K_i$ for each corporation using the SML$,$ and Evaluate which securities are are under$-$valued and which overvalued

$\backslash$table$[[\backslash$table$[[$Corporati$],[$on$]],{}_i,R_i$