Question: I need help filling in the blanks for this problem The risk-free rate on long-term Treasury bends is 3%. Assume that the market risk premium
The risk-free rate on long-term Treasury bends is 3%. Assume that the market risk premium is 6%. What is the expected return on the market? Now use the equation for the security market line (SML) (.e., the CAPM model) to calculate the company's required return. Market risk premium (RPM)- Risk-free rate Beta for the market portfolio 6.0% 3.0% + Expected return on market Risk-free rate 3.0% Market risk premium 6.0% X Beta Required return for Bournville Corp Risk free rate + + Market risk premium Beta x
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