Question: Q1/ What is the discount rate for a security given the information below? CAPM beta: 1.35 Risk-free rate: 3.60% Market premium: 5.60% Q2/ What is
Q1/
| What is the discount rate for a security given the information below? | |||||
| CAPM beta: | 1.35 | ||||
| Risk-free rate: | 3.60% | ||||
| Market premium: | 5.60% | ||||
Q2/
| What is the discount rate for the market given the information below? | |||||
| CAPM beta: | 1.40 | ||||
| Risk-free rate: | 2.20% | ||||
| Expected return on security: | 9.20% | ||||
Q3/
| What is the Sharpe ratio for a security given the information below? | |||||
| Risk-free rate: | 2.40% | ||||
| Expected security return: | 8.20% | ||||
| Standard deviation: | 37.20% | ||||
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