QUESTION 3 If investors expect a 5% risk-free rate and the market risk premium is 8%,...
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QUESTION 3 If investors expect a 5% risk-free rate and the market risk premium is 8%, with a beta of 1.5, you need to calculate the return. (Hint: Market risk premium equals market return minus risk-free rate. Market risk premium is not the same as market return.) 17% 13% 19% 21% QUESTION 3 If investors expect a 5% risk-free rate and the market risk premium is 8%, with a beta of 1.5, you need to calculate the return. (Hint: Market risk premium equals market return minus risk-free rate. Market risk premium is not the same as market return.) 17% 13% 19% 21%
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