Question: The Treasury bill rate is 4.7%, and the expected return on the market portfolio is 11.0%. Use the CAPM: b What is the risk premium
The Treasury bill rate is 4.7%, and the expected return on the market portfolio is 11.0%. 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 1.1?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 0.84 offers an expected return of 8.6%, does it have a positive NPV? e If the market expects a return of 11.4% from stock X, what is its beta?Note: Do not round intermediate calculations. Round your answer to 2 decimal places
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