Question: Can you please explain to me my error? Question Type 1 : Suppose the risk free return is 3 % and you measure the market
Can you please explain to me my error?
Question Type : Suppose the risk free return is and you measure the market risk premium to be Cisco has a beta of According to the CAPM, what is its expected return?
My Solution
Risk Free Return
beta
Market Risk Premium eMkrtrf
Expected Return CORRECT
Question Type : Suppose the risk free return is and the market portfolio has an expected return of and standard deviation of Pepsico stock has a beta of What is its expected return?
My Solution:
Risk Free Return
beta
Market Risk Premium eMkrtrfWRONG
Expected Return CORRECT
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