Question: The treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing model: a. what
The treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing model:
a. what is the risk premium on the market?
b. what is the required return on an investment with a beta of 1.5? (do not round intermediate calculations. enter your answer as a percent rounded to 1 decimal place.)
c. if an investment with a beta of 0.7 offers an expected return of 8.5%, does it have a positive or negative NPV?
d. if the market expects a return of 10.08% from stock X, what is its beta? (do not round intermediate calculations. round your answer to 2 decimal places.)
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