Question: The Treasury bill rate is 6% and the expected return on the market portfolio is 12% according to the capital asset pricing model: A what
The Treasury bill rate is 6% and the expected return on the market portfolio is 12% 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 1.7?
C. If an investment with a beta of 0.7 offers an expected return of 9.3% does it have a positive or negative NPV?
D. If the market expects a return of 11.4% from the stock X what is its beta?
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