Question: Multiple Choice Problem a 5. The expected return for Zbrite stock calculated using the CAPM is 15.5%. The risk free rate is 3.5% and the

Multiple Choice Problem a 5. The expected return for Zbrite stock calculated using the CAPM is 15.5%. The risk free rate is 3.5% and the beta of the stock is 1.2. Calculate the implied market risk premium. 5.5% 6.5% 20.0% d15,5% 12.0% 0 er ANS. 15.5=3.5+ 12(X). X = 10%

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