Question: The Treasury bill rate is 3.8%, and the expected return on the market portfolio is 11.6%. Use the CAPM: b. What is the risk premium
The Treasury bill rate is 3.8%, and the expected return on the market portfolio is 11.6%. Use the CAPM: b. What is the risk premium on the market? Note: Enter your answer as a percent rounded to 1 decimal place. c. What is the required return on an investment with a beta of 1.3 ? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. d. If an investment with a beta of 0.82 offers an expected return of 9.3%, does it have a positive NPV? e. If the market expects a return of 11.2% from stock X, what is its beta? Note: Do not round intermediate calculations. Round your answer to 2 decimal places
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