Question: Problem 1. (15 points. 5 points each question) ABC Company has a beta of 0.9 ; The risk-free rate is 2% and the expected return

Problem 1. (15 points. 5 points each question) ABC Company has a beta of 0.9 ; The risk-free rate is 2% and the expected return on the market is X% , where X is largest digit in your student ID. (For example, if student ID is 37841, expected return on the market will be 8%) a) What is the required rate of return on ABC Company's share? b) What is the market risk premium? c) What is the share risk premium

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