Required Rate of Return r = 13.0% A==8.0%. L=5.5% TRF = 3.0% Risk-Free Return, f 0.5...
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Required Rate of Return r = 13.0% A==8.0%. L=5.5% TRF = 3.0% Risk-Free Return, f 0.5 2 SML: + RPM b Market Risk Premium, RP Also Stock A's L's Risk Premium Risk Premium 3. H's Risk Premium 1.5 2 2.5 Beta Coefficient For SML line 2, what would the required return be if the line continued to Beta = 2 O 23% O 20% 10% O 18% O 8% Required Rate of Return r = 13.0% A==8.0%. L=5.5% TRF = 3.0% Risk-Free Return, f 0.5 2 SML: + RPM b Market Risk Premium, RP Also Stock A's L's Risk Premium Risk Premium 3. H's Risk Premium 1.5 2 2.5 Beta Coefficient For SML line 2, what would the required return be if the line continued to Beta = 2 O 23% O 20% 10% O 18% O 8%
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