Using the CAPM, find the required rate of return on equity for GE. GE's beta from...
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Using the CAPM, find the required rate of return on equity for GE. GE's beta from market model regression Treasury bill yield Historical market risk premium based on T-Bond (geometic mean) Historical market risk premium based on T-Bills (geometic mean) Implied equity market risk premium (based on T-bonds) 1.18 2.00% 4.66% 6.11% 6.70% Using the CAPM, find the required rate of return on equity for GE. GE's beta from market model regression Treasury bill yield Historical market risk premium based on T-Bond (geometic mean) Historical market risk premium based on T-Bills (geometic mean) Implied equity market risk premium (based on T-bonds) 1.18 2.00% 4.66% 6.11% 6.70%
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Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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