Question: Problem 8 - 9 CAPM The Treasury bill rate is 3 . 2 % , and the expected return on the market portfolio is 1
Problem CAPM
The Treasury bill rate is and the expected return on the market portfolio is Use the CAPM:
b What is the risk premium on the market?
Note: Enter your answer as a percent rounded to decimal place.
c What is the required return on an investment with a beta of
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
d If an investment with a beta of offers an expected return of does it have a positive NPV
e If the market expects a return of from stock what is its beta?
Note: Do not round intermediate calculations. Round your answer to decimal places.
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