Question: Consider the scenario where the current 3 0 - day risk - free treasury bill pays 3 . 6 % and solve for the following:
Consider the scenario where the current day riskfree treasury bill pays and solve for the following:
a If the market risk premium is what is the required return for a stock with a beta of
b Assuming a required rate of return in the general equity market of what is the difference in required returns between a stock with a beta of and another with a beta of
c A stock with a beta of while a similar stock with a beta of earns a rate of return.
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