[Ch 13] Use the information provided in the graph to answer the next three problems. Return...

Transcribed Image Text:

[Ch 13] Use the information provided in the graph to answer the next three problems. Return 20 18 16- 14 14 12 10- 8. 6 4 2- SML 0 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Beta 22. What is the risk-free rate of return? (to nearest 0.1%) % 23. What is the market risk premium? (to nearest 0.1%) % [Ch 13] Use the information provided in the graph to answer the next three problems. Return 20 18 16- 14 14 12 10- 8. 6 4 2- SML 0 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Beta 22. What is the risk-free rate of return? (to nearest 0.1%) % 23. What is the market risk premium? (to nearest 0.1%) %