Investment A has a beta of 1 . 5 and an expected rate of return of 1

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Question:

Investment A has a beta of

1.5

and an expected rate of return of

14.3 % .

Investment B has a beta of

0.9

and an expected rate of return of

10.3 % .

What is the equity premium

(

market risk premium

) ?

Report answers to four decimal place

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Apr 01, 2024 03:26 AM

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Investment A has a beta of 1 . 5 and an expected rate of return of 1

Question:

Expert Answer:

The equity premium also known as the market risk premium can be calculated using the following formu... View the full answer

Microeconomics An Intuitive Approach with Calculus

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