The two-factor model on a stock provides a risk premium for market risk exposure of 9%, a
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The two-factor model on a stock provides a risk premium for market risk exposure of 9%, a risk premium for interest rate risk exposure of (-1.3%), and a risk-free rate of 3.5% The beta for the market risk exposure is 1, and the beta for the interest rate risk exposure is also 1. What is the expected return on the stock?
Related Book For
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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