If the CAPM is used to estimate the cost of equity capital, the expected excess market return

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If the CAPM is used to estimate the cost of equity capital, the expected excess market return is equal to the:

difference between the return on the market and the risk-free rate.

beta times the market risk premium.

market rate of return.

beta times the risk-free rate.

return on the stock minus the risk-free rate.

Related Book For answer-question

Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Posted Date: Dec 08, 2022 05:06 AM

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If the CAPM is used to estimate the cost of equity capital, the expected excess market return

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Fundamentals of corporate finance

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